Private lender presentation
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Transcript of Private lender presentation
Private Lendingfor
Higher Profits
Southeast residential partners
NoticePlease carefully consider the investment objectives, risks,
costs and associated expenses before investing. Real estate
investments are not guaranteed or insured. Past
performance is not a guarantee of future performance.
Please ask questions and ask for more information before
you consider any investment.
Private Lending for Higher ProfitsHow much are you currently earning on
your investments? CDs, Stocks, Mutual Funds, Savings, IRAs,
401K accountsAre you consistently earning 10%? Do you want to have more control and
safely increase your return on investment?
Recent Market History…Stock Market Interest ratesCorporate fraud Accounting fraudSecurities fraudWorld events
Real Estate…Slow, steady appreciationTangible assetEveryone needs shelterTax benefitsThe American Dream
Who We Are…We are a local Real Estate Investment
Company We are affiliated with a group of
investors that buys and sells several houses each month
We work with Private Lenders to finance many of the houses we buy
We buy pre-foreclosure and distressed houses, usually in nice neighborhoods
We buy houses from sellers who need to sell quickly or who need debt relief
We renovate and then lease or sell the property
What We Do…
We borrow funds from private individuals for acquisition, repair, holding and selling costs
In exchange, our lenders safely earn a higher than average return on an investment secured by real estate
What is Private Lending?
Credit is tightBanks move slowly
Our sellers need to move quicklyThis is a very competitive market
Access to cash allows us to buy quickly and at a discount
Banks will not lend money in certain situations e.g. No carpet or no furnace = No Loan
Why Not Use Banks?
Let’s walk through an example
At a formal closing, you receive four
documents to secure your investment
We purchase and renovate the house
You earn 10% simple interest
We sell or refinance the house
We pay off your loan including
Interest earned SOLD
You have money to lend
(self-directed IRA, old 401K,
CD/Savings)
We locate a house to buy
and provide you with details to
evaluate
Rate 12 Month Earnings
2.0% $ 300
10.0% $1,500
You make as much in ONE year at 10% as you do in FIVE years at 2%
Example:$15,000 Loan
Reinvest the principle and interest each year and you earn over $9600 more over 6 years
Example:Power of Compounding
$15,000 Loaned at 2% $15,000 Loaned at 10%Year Principle Rate Interest Total
1 15000.00 2% 300.00 15300.00
2 15300.00 2% 306.00 15606.00
3 15606.00 2% 312.12 15918.12
4 15918.12 2% 318.36 16236.48
5 16236.48 2% 324.73 16561.21
6 16561.21 2% 331.22 16892.44
Principle Rate Interest Total
15000.00 10% 1500.00 16500.00
16500.00 10% 1650.00 18150.00
18150.00 10% 1815.00 19965.00
19965.00 10% 1996.50 21961.50
21961.50 10% 2196.15 24157.65
24157.65 10% 2415.77 26573.42
$9680.98
Example: $15,000 Loan
Growth on $15,000 Loan
0.005000.00
10000.0015000.0020000.0025000.0030000.00
1 2 3 4 5 6
Years
Do
llars 2%
10%
Four Documents Security Deed or Mortgage Promissory Note Lender’sTitle Insurance Hazard Insurance
How is your loan secured?
We will not over-leverage propertyMaximum 80% Loan to Value (LTV)
Helps protect your investment Based on after-repaired-value (ARV) and
comparable sales
Additional security…
Comparable
Sales
Repair
s
We can help you earn TAX FREE retirement income using self-directed IRA Accounts that permit you to make high yield loans secured by real estate
Rollover your old 401K or IRA to a custodian that allows investment in Real Estate
Custodians - examples Equity Trust Entrust Group Pensco Trust Company
Do you have an old 401K or IRA?
Minimal account cost Fees comparable to other custodians
Takes about 10 days for transfer Paperwork is online or we can handle transfer
Direct transfer, so no tax impact You can invest IRA, Roth IRA, Simple IRA and
Simplified Employee Pension (SEP) Assets
Do you have an old 401K or IRA? (continued…)
Term is negotiable Should fit your investment strategy
Most IRA holders invest for longer term 24-36 months
We will match an investment to your needs If you need money back quickly?
Give us a few weeks to replace your investment with another lender
There is no early withdrawal penalty
What if you need to get your money back quickly?
Private lender money at work…
Before
After
Owner Finance usingExisting Financing
Private lender money at work…
Before
After
Rehab with Private Financing
Private Financing Breakdown
After Repair Value $190,000 Purchase Price $120,000 (Subject To) Amount to Seller $ 2,000 Amount Borrowed $ 23,650
Includes Acquisition/Reinstatement costs Repair Costs Holding Costs Marketing Costs
Terms: 10% Payable upon sale of property
Private Financing Breakdown
Sell in 6 months for net of $160,659Repayment of loan
$23,641 + 1,182 = $ 24,823Net Profit $ 39,477
Private Financing Breakdown
How do I get started?
You can start earning 10% today Set up a self-directed IRA if you do not
have one already – ask us about some local companies
Sign up to receive our private lending opportunities (on the right)
Let us know how much you would like to lend and we will match you with an appropriate property
Thank you!
The Southeast Residential Partners Team