CLUBHOUSE 100 TRAINING MODULE · Clubhouse $1M challenge

Jim Thorpe

Mar 29 • Club 100

CLUBHOUSE 100 TRAINING MODULE

Evaluating Apartment Buildings and Increasing Net Worth

MODULE OVERVIEW

This module teaches you how to:

Identify undervalued apartment deals
Analyze real value, not broker projections
Increase net worth through forced appreciation
Structure deals with seller financing
Execute the “double rents, double value” strategy

LESSON 1: HOW APARTMENT BUILDINGS CREATE WEALTH

Core Principle:Apartments are valued based on income, not comparable sales.

Formula:Value = Net Operating Income (NOI) divided by Cap Rate

What Most Investors Get Wrong:They rely on cap rates aloneThey trust broker pro formasThey ignore rent upsideThey assume value is fixed

Reality:Value is created, not found.

Clubhouse 100 Strategy:You do not buy based on current income. You buy based on future performance.

LESSON 2: FINDING THE RIGHT DEAL

Target Criteria:Owned for more than 10 yearsBelow market rents (20% to 60%)Poor managementDeferred maintenanceMom and pop ownership

Red Flags That Indicate Opportunity:No rent increasesMonth-to-month tenantsTired ownershipMinimal marketing exposure

Mindset:You are buying inefficiency, not just property.

LESSON 3: ANALYZING THE DEAL

Step 1: Current SnapshotIdentify current rents, expenses, and NOI

Step 2: Market RealityDetermine true market rents and normalized expenses

Step 3: Future NOIProject NOI after rent increases and expense improvements

Step 4: Future ValueApply cap rate to stabilized NOI

Example:Current NOI: $100,000Cap Rate: 6%Value: $1,666,667

Improved NOI: $200,000Same Cap Rate: 6%Value: $3,333,333

Value Created: $1,666,666

LESSON 4: DOUBLE RENT STRATEGY

Process:Acquire underperforming propertyStructure seller financingImprove operationsRaise rents to marketRefinance or hold

Key Principle:Profit is created through execution, not purchase price alone.

LESSON 5: SELLER FINANCING

Advantages:Lower upfront capitalFlexible termsFaster executionNo bank constraints

Two-Offer Strategy:Offer 1: Cash at lower priceOffer 2: Seller financing at higher price

Seller Priorities:Income stabilityTax benefitsSimplicityCertainty

LESSON 6: INCREASING NET WORTH

Wealth increases when:NOI increasesDebt remains fixedValue increases

Cycle:AcquireImprove NOIIncrease valueLeverage or refinanceRepeat

Goal:100 doors producing stabilized income

LESSON 7: EXECUTION PLAN

Weeks 1–2:Identify properties

Weeks 3–4:Contact owners and make offers

Months 2–3:Secure contracts

Months 3–6:Execute improvements and increase rents

ASSIGNMENT

Part 1: Identify 3 properties that meet:Non-owner occupiedOwned 10+ yearsBelow market rents

Part 2: Analyze each property:Current rentsMarket rentsCurrent NOIProjected NOI

Part 3: Calculate:Current valueFuture valueValue created

Part 4: Write two offers:Cash offerSeller financing offer

Part 5: Outreach Script:

Hi, I came across your property at [address].I am a direct buyer and can make this simple.

I can either:Pay cash and close quickly, orOffer a higher price with monthly income to you

Would you consider selling if we made it easy?

ASSIGNMENT: CLUBHOUSE 100 PARTNER

Objective:Execute a real-world deal pipeline using this model within 14 days.

Task 1: Market SelectionChoose one primary market and one backup market. Focus on areas with:Older ownershipRising rentsLimited new supply

Task 2: Build Target ListPull a minimum of 50 properties that meet: Non-owner occupied Owned 10+ years 2–20 units preferred

Task 3: Direct OutreachContact at least 20 owners using:TextPhone callsVoicemail

Minimum requirement:10 live conversations

Task 4: Deal UnderwritingFully analyze at least 2 real properties:Current NOIMarket NOIProjected value

Task 5: Offer ExecutionSubmit at least:2 cash offers2 seller financing offers

Task 6: Seller ConversationsHave at least 5 real conversations where you:Explain seller financingPresent both optionsHandle objections

Task 7: Pipeline TrackingMaintain a simple deal tracker including:Property addressOwner contactStatusNext follow-up

Task 8: Report Back

Submit a summary including:Number of owners contactedNumber of conversationsDeals identifiedOffers madeNext steps

Performance Standard:

Minimum acceptable:20 contacts, 5 conversations, 2 analyzed deals

Target performance:50 contacts, 10 conversations, 4 offers submitted

Elite performance:100+ contacts, 20+ conversations, 1 deal under contract

FINAL TAKEAWAY

Execution creates opportunity.Analysis creates confidence.Action creates deals.

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