Adam J Petriella is presenting an opportunity for investor participation in his commercial mortgage brokerage business, The Real Estate Finance Group. Commercial mortgage origination volumes are increasing and projected to continue rising through 2015, presenting an opportunity. However, hiring and stabilizing capable loan originators is challenging for commission-only sales organizations. The goal is to hire and develop 20 stabilized loan originators over 24 months. Offering draws and incentives could double the number of stabilized originators, growing profits faster. Petriella is requesting $250,000 in financing at 8% annual interest over 5 years to conservatively offer draws to top candidates and better position the company to take advantage of the growing commercial mortgage market.

1. Opportunity for Investor Participation
November 16, 2012
Presenter
Adam J Petriella, Managing Partner

2. Interest Rates at Historical Lows
Strong Impetus For Refinancing

3. Commercial Real Estate
Mortgage Brokerage: Positioning For The Next Wave
Commercial/multifamily mortgage
origination volumes during the second
quarter of 2012 were up 25 percent from
second quarter 2011 levels, and up 39
percent from the first quarter of 2012,
according to the Mortgage Bankers
Association’s (MBA) Quarterly Survey of
Commercial/Multifamily Mortgage Bankers
Originations.

4. MOMENTUM is Building
The Mortgage Bankers Association (MBA) projects
originations of commercial and multifamily
mortgages will hit $230 billion in 2012, an increase
of 17 percent from 2011 volumes, and continue to
rise to $290 billion in 2015.
In addition to New Originations:
By the end of 2015, existing mortgage debt
outstanding is forecast to exceed $2.5 trillion.

5. The Wave is Growing
How Can We Take Advantage of This Momentum?
We MUST be POSITIONED correctly to catch the wave.

6. Opportunity:
Originators Are Profitable
• History Shows Each Originator Can Close
$25,000,000 in Annual Loan Volume ONCE
STABILIZED.
• This Represents $200,000 in Average Gross
Fees
• Currently Running at 20% Profit Margins
Or
$40,000/Originator

7. Challenge
Hiring & Stabilizing Capable Candidates
100% Commissioned Sales Organizations Have
the Following Challenges:
• Risk Losing Very Good Recruits to Salaried
Jobs or Sales Jobs With Draws or Benefits
• Risk Losing Performers if Additional Hiring is
Lackluster
• Opportunity Cost to the Company for Slow or
Mismatched Hiring

8. GOAL
Hire and Develop 20 Stabilized
Loan Originators Over The Next
24 Months.
RESULT
Better Use of Time & Talent
PROFITS

9. Getting on A Wave Takes Time & Resources
Let’s Raise Probability

10. Raise Odds of Hiring Capable Loan
Originators by Offering Support
For As Little as $1000/month to as much as
$5000/month, hiring can be impacted
dramatically.
Now
Interview 10 Hire 3
Of 15 Hire’s: Stabilize 5 in 1 Year
Other 10 Wash Out
Goal to Stabilize 10 in 12 Months

11. New Hires
10 Stabilized Loan Originators Can Net The
company $400,000
Vs.
Only 5 Stabilized Originators in Same Timeframe
Netting $200,000

12. Stabilized Originators Are Profitable:
Let’s Get More On The Wave!!
By Offering Draws and Incentives Goal is to
Double Stabilized Originators, Grow Company
Faster

13. EXPERIENCE COUNTS
Petriella Will Get Them Up and On The
Wave

14. DEEP EXPERIENCE and MEASUREABLE
RESULTS in HIRING, TRAINING
• Petriella Joined National Brokerage Firm in 1987
• Became Top Performer (100% Commissioned Sales) in Los Angeles Office
• Left Brokerage Production for Executive Track With Same Company (salaried position)
• Turned around money losing Orange County CA Office (Netting $2MM/annum)
Overseeing in Excess of 500 Closed Transactions in a 72 month span.
• Executive in Charge of Developing New Lines of Business (Hospitality Brokerage Closing
5 Deals/Month Within 60 Months)
• Executive in Charge of Opening North East Offices Grossing $2MM in 15 Months
• Responsible For Hiring and Training Several of Company’s Top Earners
• Rejoined Sales Force in 2004: Capital Markets Division in Los Angeles Closing Upwards
of $250MM in 7 years (100% Commissioned)
• Departed From Company December 2011 Opening Los Angeles Office of The Real Estate
Finance Group with partner.
• Opened New York City Branch in September 2012: Net 4 Full Time Hires Since
September

15. Mitigate Risk With Proven Track
Record and Existing Infrastructure
On track to close 30 Transactions in 2012 Worth Aggregate Amount of
Approximately $60,000,000
Track Record
Intellectual Capital
Good Reputation
Existing Client Base
Brand Name & Logo
Corporation
Infrastructure
Experience
Proof of Concept
7 Full Time
1 PT
1 Intern
1 Analyst/Processor
Pipeline of Closings
Cash Flow

16. Financing Needs
Source: $250,000
Return to Lender: 8%/Annum of Outstanding
Principal
Term: 60 Months
Payout From Cash Flow
Use:
Conservatively and Thoughtfully
Offer Draws to Best Candidates

17. Help The Real Estate Finance Group Go From This
TO
THIS

18. Help Me Get More People on The Wave
Thank you.

19. Opportunity for Investor Participation
November 16, 2012
Presenter
Adam J Petriella, Managing Partner