Frequently Asked Questions
The following list of questions and answers has been furnished to help educate our prospective partners and help them to better understand the "Rules of Engagement" so that they can determine if this opportunity to partner is right for them and right for their deal.
Q: How is the profit participation split on a deal determined?
A: A student's profit participation can range from a minimum "Finder's Fee" of $50,000 all the way up to 40% of the "NET" profit on a deal. If Ron (or his designee) puts up money or has to sign personally for any financing, your interest will be a maximum of 25% as long as you can manage the entire project from beginning to the end with minimum help from the Regional Project Manager. Often, the only money required is earnest money and due diligence costs. The balance comes from our financing arrangements. All finder's fees are paid $25,000 at the closing of the purchase and $25,000 is paid upon project sell out or refinance. All these details will be discussed and an agreement reached early in the deal. If you're not happy with them, you're free to take it elsewhere. It's your deal. For a more detailed explanation, check out the "Rules of Engagement".
Q: How do I know that you won't try to steal my deal and cut me out?
A: One answer could be the sheer volume of deals we get. We receive many deals each month for consideration. That means there's plenty to choose from. If you know me at all, you realize no deal means enough to me to steal from one of my own students and put my hard-earned reputation at risk. In reality, it comes down to the fact you must trust the people you work with or you shouldn't work with them.
Q: How long will it take to get paid?
A: Other than a finder’s fee, you get paid as soon as the first check arrives. That means you should consider it a bonus and not rely on it. These deals take time and things don't always work out as planned. It ain't easy to get rich. It requires a little patience. But it sure beats working for someone else.
Q: If I'm sharing in the profit, how do you take title?
A: An LLC will be formed and you will have a profit share agreement. I will always maintain control.
Q: Who handles the money?
A: The banking and accounting is done by my staff in Jacksonville, FL.
Q: How is the money distributed?
A: All invoices are paid from my office. When profit occurs, distributions are made on a pro-rata share after all invested capital and direct expenses are returned to its source which will include earnest money deposits. We will maintain a P&L on each.
Q: If I submit you a deal you don't want, do I owe you anything if I do it myself?
A: Absolutely not! If we turn it down, you're absolutely free to do anything with it you wish, as long as we get back any money we have invested for deposits or due diligence.
Q: Do I have to live where the property is located?
A: No, as long as you can collect the facts, we'll accept your submission. However, in order to be considered for any thing other than the finder’s fee or a small percentage, you must be able to make frequent visits to the site. The closer you are to the property, the easier it will be to become more involved.
Q: Do you do foreign deals?
A: Generally we look at the continental US only. Maybe we'll look at Alaska and Canada, but we're unlikely to do deals in Hawaii.
Q: Why do you require partners to attend your boot camps first?
A: We need to make sure we can speak the same language and all our time isn't spent training folks in the basics. Pre-screening deals properly requires a little education, and we've proven the best prospects are coming from the better trained students. As I've always said, "The more you learn, the more you earn". These big commercial deals are certainly no exception to that rule.
Q: Can I choose my Regional Project Manager?
A: If you have already established a relationship with an RPM, you may request to work with him/her, otherwise one will be automatically assigned to you.
Q: What is the submission process?
A: Go to the submission section once we set you up with a password and simply fill in the blanks and follow the instructions. To get a password you must have completed Commercial Property Boot Camp.
Q: How are Regional Project Managers selected?
A: Based mostly on where they are located in relation to your property. I choose who becomes a project manager based on past performance, communication skills, and other factors I won't disclose.
Q: My deal was automatically rejected. Now what?
A: It may be due to a data entry error, please recheck your data. If all is correct, it means that your project did not fit our criteria. That does not mean it’s a bad property, so if you can give us good reasons to reconsider, resubmit it and we’ll taka another look.
Q: What if Ron doesn't want to partner on the deal?
A: You may do as you wish. It's your deal. The project managers are free to partner on those I reject if you agree to 10% of the deal off the top as my compensation. I'll get paid when you get paid.
Q: Can my deal be resubmitted if the facts (i.e. price, zoning, best use, path of progress, etc.) change?
A: Certainly and we would expect you to do just that.
Q: How long will it take to get a response from the Regional Project Manager?
A: Within five business days after you submit the deal.
Q: How do I keep up with the progress of my deal?
A: If your project is selected to pursue, you will receive notification by your Project Manager, who will update you via the “Manage Notes” section of the website. There is also a “Communicator” tab where you and your Project Manager can exchange data.
Q: Can I share my access and password?
A: Only with your spouse or business partner. We will accept deals only from registered users.
Q: Can my partner submit deals?
A: Only if they come in under your name or he/she qualifies by attending one of the two required trainings.
Q: How many deals can I submit?
A: As many as you wish.
Q: Are there any fees that I should be aware of?
A: A $25,000 administration fee will be charged to the deal at such time as the property produces cash from a loan or a sale, plus all loans will incur fees to the lender and there will be a monthly management fee to cover the cost of our Regional Project Managers and other management overhead. These fees will be taken out of the project funds. Another good reason to always borrow more than you need.
Q: If my deal is accepted, what is my responsibility?
A: That depends on the plan you and I agree is applicable to your situation. Check out the "Rules of Engagement" for more details.
Q: Will the Regional Project Manager assigned to my deal be training me?
A: No! Their job is to get the deal done. Training is provided in the classroom, however, if you select Option #2 you will work VERY closely with the Regional Project Manager and if you pay attention, you just might learn a few things!
Q: If I decide to provide funds, what is the extent of my financial obligation?
A: The earnest money deposit, due diligence costs and other expenses until we get the hard money loan to recapture your cash outlay and holding costs or sell the property. Most properties are purchased with this loan so your cash should not be out past closing and large cash down payments are covered by the acquisition loan.
The above list is certainly not meant to answer every possible question that may pertain to this unique opportunity. You are encouraged to ask whatever questions you may wish to have answered at any time during the deal submission, consideration and consummation phases of a project.
Note: Please be aware that at no time are you to contact Global Publishing, Inc. about the status of any of your deals. Global Publishing, Inc. does not buy Real Estate, has no commercial consultants on staff and won't be able to help you in any way on your projects.
