A.   Uses of Financial Statements

         1)   Profit & Loss (P&L), Income & Expenses

         2)   Balance Sheet (Assets, Liabilities Equity)

         3)   Cash Flow - Whence (from) - Thither (to)

B.   Past vs. Future Performance

         1)   What was accomplished, missed, and why?

         2)   What will be accomplished, when, at what cost?

         3)   EBITDA - Earnings before interest, taxes (corporate) depreciation (regular & Section 179), and amortization.

         4)   Capitalization ("cap") rate equals net operating income (N.O.I.) divided by the asset's value or selling price.  The lower the cap rate; the higher, the value.
                   Examples: At 4% cap rate, a $300,000 net cash flow indicates value of $7.5M.  At 6%, a value, a value of $5M.

C.   Ways to Save

         1)   Simultaneously issued (S.I.) title insurance.

                  Because only an owner's policy (not a mortgagee's or lender's policy) offers a re-issue credit and because a new owner's policy costs usually a minimal
                  ($200-$250) additional fee - obtain a new owner's policy along with each new mortgagee's policy whenever amount of new refinance exceeds amount
                  of old owner's policy.

                  For $1M new refinance, A's premium is based on $200,000 prior owner's policy and B's is based on $800,000 prior owner's policy.

                                                                                               A                                    B                                  Savings

                                                       Policy Charge        $4,630                          $3,430                             $1,200

         2)   Assignment rather than satisfaction of old mortgage.

                Major loan costs are (a) documentary note at rate of $0.35 per $100 multiple or fraction, and (b) intangible at rate of $2 per $1,000 (or $.002).
                    Examples of satisfaction compared to assignment, followed by modification.  Note that this requires approval from old and new lender.

                                                                                        Based on $800,000 Old Balance and $1M New Loan

                                                                                    Satisfaction              Assignment ($200,000 New Money

                                                         Due Note:             $3,500                        $   700

                                                       Intangible:              $2,000                        $   400

                                                             TOTAL:              $5,500                        $1,100