M3 Bluestone Pp Final

TurnKeyREO / Foreclosure

Investment Program

Bluestone REO Group(914) 372-7510

www.BlueStoneREO.com

M3 REO Group1-866-200-1646www.M3REO.com

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www.M3REO.com | www.BlueStoneREO.com

An Investor’s Dream – Wealth Building Cycles

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www.M3REO.com www.BlueStoneREO.com

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• Foreclosure homes on average $21,900

• Passive investment

• Good Income & hassle free investment

• Expert management team in place

• Great return on investment

• Previous values $80,000 - $200,000/home

• Help solve America’s foreclosure crisis

An Investor’s Dream

$21,900


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• History tells us that the U.S. real estate market is cyclical providing ideal times for investors to purchase and sell.

• Today’s economic and market meltdown has created one of the greatest real estate investment opportunities in U.S. history.

• This is a once in a lifetime opportunity to purchase homes with a positive cash flow for a fraction of their values..

Perfect Time To Invest


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• The current U.S foreclosure crisis is worse than during the Great Depression.

• More millionaires were created during the Great Depression than any other time in U.S history.

• Fortunes will be made by those with the knowledge, connections and drive to take advantage of the current housing market.

Perfect Time To Invest


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• Traditional places to invest your hard earned cash, such as banks, stocks, money-market funds, bonds, and mutual funds are producing low returns and considerable risk.

• Retirement funds are Shrinking in Value!!!

Where can you turn to in these troubled times?

• REO home(s) investing offers a safe place to invest your money today with an exceptional Return On Investment(ROI).

Troubled & Uncertain Times


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• Real Estate Owned (REO) is a term for Homes that banks own as a result of Foreclosure actions.

• The banks currently own an unprecedented number of homes and need to clear these homes off their books, which has created an incredible opportunity for investors with the right connections.

What is a REO Property?


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• The number of foreclosures have a direct effect on the number of renters.

• When the banks repossess homes, many local families are forced to rent small apartments and are unable to qualify for another mortgage. Hence the power of our REO Program.

Effect of Foreclosure


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• A well structured program that is designed to provide investors with the best value REO homes; a worry free, passive investment with built-in equity, positive cash flow, well-defined exit strategies and unmatched return on investment (ROI).

• The program also focuses on helping working class American families get back into a home they can afford to OWN and thus refuels the property market.

The Investment Opportunity

Our Goal is Simple:Make HomeownershipCheaper than Renting

“No Family Left Behind”


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• BlueStone often uses the term "Golden Handcuffs" while explaining how their home ownership model works. What are Golden Handcuffs?

Golden Handcuffs incentivize homeowners to remain current on their payments by keeping the monthly cost of ownership LOWER than the cost of renting!

• Using a Land Contract, a transaction is structured where the total monthly cost to the Homeowner is about 20% LESS THAN comparable rent, and since the occupant is a homeowner and not a tenant, it’s a win win situation for them. Where would they go if they default? A rental will cost them more!

Make Homeownership Cheaper than Renting

“No Family Left Behind”

The Investment Opportunity


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• Source the best valued REO homes in family communities throughout the U.S.

• Offer properties to investors at an average $21,900, including all upfront closing costs.

• Passive and hassle free investment with our Management System.• Built in equity.• Homes are inspected and in salable

condition.• No liens and back taxes.

Passive Investment


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• Once you purchase your properties, BlueStone will strategically advertise each property for purchase by undercutting local rental rates, for example: (Area rent of subject home: $500 per month).

Sign reads-“Own this home: $500 Down and $350 Per month”.

• Once a qualified Homeowner is selected, they execute a Land Contract at a fixed rate of interest for a specified loan term.

• At this point, you take the position similar to that of a Bank. There is no Landlording or Management of the home. That becomes the responsibility of the new homeowner.

BlueStone Management System


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You buy an REO home for $21,900 where the Land Contract will be $350/month (local rents $500+/-)

Home is advertised and sold as:$500 Down and $350 Per month This equates to a Land Contract price of $32,570 with a 15 year term at 10% interest

Investor ROI:$350 /mo equates to $295 per month $295 x 12 Months = $3,540 per year

$3,540 income on $21,900 = 16%+ Return on Investment (ROI)(Net Income / Purchase Price = ROI)

This ROI is based on annual rental Income. If one of our exit strategies takes place the ROI increases dramatically.*Net Monthly = Gross Income less Management fees less Default Risk Factor.

Example


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BlueStone Inspection crew photographs property, obtains property condition report and studies overall marketBlueStone markets the property via online advertising, placing signs on the property and using other creative marketing techniquesAnswers all inbound calls and conducts prequalification interviewsCollects and processes applications from interested HomeownersPerforms and reviews all credit checksVerifies income using proprietary systemsConducts background checks of potential buyersReviews and selects the most qualified buyerHandles all paperwork for creating & servicing the Land Contract

Power of the BlueStone

Management System


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• Upon the successful execution of a Land Contract, BlueStone’s Special Servicer will manage the collection of the monthly payments. The Servicer is a well established company that currently manages thousands of land contracts and has state of the art reporting systems for the investor.

• The Servicer collects the monthly payments and escrows for real estate taxes and remits the net payment directly into the investors bank account.

• Investors have Real time online access tomonitor the assets performance.

• As the Land Contract “note” seasons(approximately 6-18 months), BlueStone can assist in various exit strategies.

• In the unlikely event of default, BlueStonecan work with the investor and resolve issues.

BlueStone Management

System


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REO Value Chain

BlueStone M3 REO is a

private real estate

group focused on

acquisition of

underperforming and

deeply discounted

investment

opportunities in the

United States.


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SELL THE MORTGAGE NOTE (Exits are Based on the Previous Example)

• Investor Cost $21,900• Investor Income $3,540 per yr net• Land Contract with face value $32,570. Sell “note” on secondary market for

$26,000 (about 20% Discount of $32,570)

Projected Total Return in 24 months:$ 7,080 net income collected$ 4,100 capital gain from sale of Land Contract (Note)$ 11,180 total profit

Estimated ROI (Total profit / Total Investment ) = 51% ROI

Exit Strategy 1


*Net = Gross Income less Management fees less Default Risk Factor

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HOLD THE MORTGAGE NOTE

• Purchase Price on average of $21,900

• Receive monthly payments for 15 years

• Earn 15-20% returns as near passive income

• In about 6 Years you have collected $21,900 in payments, your initial investment.

• Every month thereafter is pure profit.

Exit Strategy 2


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HOMEOWNER REFINANCE• Purchase Price on average $21,900• Receive monthly payments.• After 18-36 months Homeowner refinances property

with institutional financing (Bank, FHA, etc). Our credit counselors work to improve their credit.

• New lender pays off investor $32,570 Land Contract.

Projected Total Return in 36 months:$ 10,620 net income collected$ 10,670 capital gain from occupant refinance$ 21,290 total profit

Estimated ROI (Total profit / Total Investment ) = 98% ROI

Exit Strategy 3



Home Occupant Sells the Home • In the next few years as supply is consumed,

demand will increase substantially and home prices will rise.

• As home values rise, the home occupant is able to sell the home on the open market for a substantial profit. This will cash out the investor the remaining principal of the Land Contract.

Exit Strategy 4

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Disclaimer: All the exit strategies discussed herein may vary depending on property and market conditions. BlueStone REO LLC/principals do not guarantee, and hold no liability for, any actions or comments influenced by the information contained in contained products and services received.

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• Most of our homes are located in the Mid West and South East

• We only focus on areas where property prices are low in relation to rental rates

• Why buy one investment property in California, New York or Washington for $290,000 and receive $1,200 per month (or less) when you could buy sixteen homes for $290,000 in a diverse portfolio and make $4,700+ per month with tremendous upside?!

Where the Homes are Located


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Area of Concentration – Mid West


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Solving America’s Foreclosure Crisis You are buying a Commodity Previous values $80,000 - $200,000 15-20% ROI per annum are typical 50-200% Total ROI Projection Multiple Proven Exit Strategies No Landlording, No Maintenance Issues

You are the bank in this program and you have to think like a bank…this investment provides you with positive cash flow and a sustainable ROI – it does not matter which state the Homes are in.

Invest with your mind & your heart!

The Power of our Program


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Breaking Traditional Thought


Why take on all the hassles of being a landlord when you can wear the same shoes as the bank? . .

Reap the rewards of being the Bank not the Landlord! .

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• Notes are usually written at 10% interest on a 15 yr term, regardless of market conditions & fluctuations

• Liquidity of funds (multiple exit strategies)• No monthly overheads (owner occupant pays taxes and insurance & maintenance) • Homeowner has pride of ownership and does renovations and improvements to the

property • Homeowners don’t call their lender for maintenance issues• No renovations/repairs required to get the property ready• Easier and quicker to get a Homeowner than a renter• Homeowners are less likely to miss a payment or move• Land contract eviction is similar to that of landlord/tenant eviction

process in many states – faster & cheaper than foreclosure process• No complaint calls from neighbors

You will never consider being a Landlord Again! .

Benefits of Being the Bank


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• Send 25% fully refundable deposit

• We will send you inspected homes from our inventory with pictures, property condition report, detailed local market data and with web links to substantiate data.

• You have 7 days to review the homes and send the balance of the purchase price along with the signed purchase contract.

• Once the funds are received, we Fed Ex you the closing package, you close on the home.

• BlueStone management works to secure a Homeownerusing a Land Contract to make sure your investment is performing. Once home is sold to a Homeowner, you nowact like a bank and get monthly “mortgage” payments.

Congratulations!

How to get Involved


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Call to Invest Today!Close in 7-14 Days

M3 Equity Group BlueStone REO Group 202-14045 104 Ave 45 Knollwood Rd, 4th FloorSurrey BC Canada V3T 1X4 Elmsford, N.Y. 10523Phone: 1-866-200-1646 Phone: 1-914-372-7510


Disclaimer: All the strategies discussed herein may vary depending on property and market conditions. BlueStone REO LLC & its principals do not guarantee, and hold no liability for, any actions or comments influenced by the information contained in

contained products and services received. This is not an investment offering nor a solicitation for funds.

M3 Bluestone Pp Final

Economy & Finance

Transcript of M3 Bluestone Pp Final