S.E.C. Real Estate Observer

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In the last article I spoke about the duties of the Moderator, what price is and how it is established, client participation, and TAKERS. Now, how does the Moderator fit into this equation? Moderators must be cognizant that value equates to the sum of the benefits as may be identified and/or interpreted by each individual. The Moderator’s task is twofold. First, the Moderator must extract from the Presenter and deliver to the participants (through well crafted questions) as many facts, feature, amenities, specifically stated opportunities, and/or potentials for profit that are present in the subject property. And, secondly, through this same questioning procedure and reveal through the Presenter, the client’s capabilities, talents, expertise, property ownership experience, skill and other assets they are willing and/or capable of contributing to the transaction, including what the client is prepared to do to forward a transaction. The list again is:

1. Discount and buyback
2. Lease back
3. Lend back
4. Joint venture forfeiting cash flow
5. Partition the cash flow and provide a high rate of return
6. Joint venture providing a safety first position
7. Take a low interest carry back note
8. Make a geographical move (relocate)
9. Take on a negative cash flow
10. Use financial strength
11. Accept personal property
12. Move the debt
13. Provide management
14. Take property in any location
15. Remain responsible for the existing debt
16. Remain responsible for the payments
17. Obtain the entitlements to the property
18. Mitigate wetlands or other environmental restraints on the property
19. Pay all closing costs
20. Add cash (amount)
21. Other!

It is the Moderator’s responsibility to flush out, in a concise manner, all the significant information from the Presenter needed by those assembled to cause action, whether it be verbal or written. This process enables the participants to tally the benefits appropriate to their situation or circumstances.

Moderators must remain focused and objective. Although on rare occasions it does become necessary to elucidate a possible benefit, this circumstance arises only when the information from the Presenter remains confusing or unclear. Moderators should have confidence that the participants listening to a well-designed presentation can integrate what they hear and learn in order to ascertain for themselves whether benefits exist or not, both for them and/or their respective clients.

When someone declares they are a TAKER of any sort, or something is “worth it,” they have addressed to their satisfaction one or all of the following:

1. I am content and complete with what is presented.
2. I can pass on what is presented to one of my contacts, associates or network more expeditiously now.
3. I can convert what is presented into the benefits I seek.
4. What is presented is a more efficient means to achieving my goals.
5. What is presented creates an opportunity for future profits.
6. What is presented makes debt easier to pay or more manageable.
7. What is presented provides sufficient tax advantages.
8. What is presented creates greater self-esteem and a sense of self-worth.

The question is: How many benefits did you derive from this article?

The ultimate goal is to have someone, either participant or client, proclaim: “Under the following conditions, the presentation or transaction idea is worth it; therefore, I’LL TAKE IT!” Those are the sweetest words that you, as the Presenter, can ever hear. It is at this point that the Presenter or client, and the TAKER, have reconciled in their respective minds the price-benefits-value components.
Moderators who understand the elusive concept of value allow the participants to identify for their clients or themselves the benefits available. Formulating questions which allow the Presenter to reveal, in an orderly fashion, information about the property and the ownership create value in the audience’s eye. The more benefits that can be interpreted from a presentation, the more value it has!