All About Real Estate Notes

A Real Estate Services Firm & Buyer of Owner-Financed Notes We provide cash solutions tailored to your needs for cash from your real estate backed private loans. We strive to listen to and meet your needs in a professional, responsive, and timely manner to deliver needed or desired cash now. When you or your client communicates with us, you will always deal with someone who is invested in creating the best cash outcome possible for your needs and situation. Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] S trategic R esource D evelopment, LLC S D R

What You will Find in this Presentation :

Note Basics ……………………………….....…...3-8

How Can We Help You? .............................9-15

For Note Holders

For Property Owners Having Trouble Selling

For Foreclosure Investors Wanting Fast Cash

For Professionals

Note FAQ’s …………………….......................16-22

About Strategic Resource Development ….23

Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] S trategic R esource D evelopment, LLC S D R

A Note is a private loan or promissory note, backed by real estate (a deed of trust, a mortgage, a promissory note, etc.), for which an individual is receiving payments.

The simplest form of a Note is a private loan created through seller or builder financing on a house, condo, apartment unit or complex, mobile home, commercial property, mixed-use property, or even land.

Other notes may be created through the sometimes complex financing arrangements of an investor, builder, or other professional party, or even as a means of complying with a legal settlement.

Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] Note Basics S D R

There are many reasons why someone would want

to sell their note.

The 2 most common reasons are:

The holder of the note is simply tired of keeping up with monthly payments.

or

The holder of the note never wanted to receive payments in the first place and just wants their cash!

Cash is Needed Now for

Bills or Credit Cards

Medical or Legal Expenses

College Tuition

Tax or Other Debts

Estate Settlements

Business Operating Capital

Business Investment Cash Flow

Cash is Desired Now for

A Vacation

Home Improvements

A Large Purchase

A Large Down Payment

Stock or Retirement Investing

Christmas or other Holiday Spending Money

Other Reasons are: Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] Note Basics S D R

Payor or Property Concerns

Payments may not be consistent or you are concerned with the payor’s ability to continue to pay.

You are concerned the property may depreciate in value due to the economy, the location, or its condition.

You don’t want the insurance liability of the property or the liability for real estate taxes if the property owner does not take care of them.

You don’t want the headache of a potential foreclosure situation.

How do I sell my Note? The first thing to do is to call us for a free no-obligation quote. We will need some basic information about your note, the note payors, and the property backing up the note in order to provide the best cash quote we can.

Once we have this information, we can have a quote back to you in a few days. When you have the no-obligation quote in hand, you can then make an educated decision based on your need or desire for cash now vs. the continued monthly payments.

Once you accept an offer, we will send you the offer in writing and ask for a copy of the note and related paperwork. The transaction will normally close in about 30-45 days, most likely through the same title company that closed on the original loan. That’s it! No additional fees or costs are needed from you. All fees are paid by the buyer, and the cash is yours!

However, if you fit into either of the following 3 categories, please read the next couple of pages to see how we can specifically assist in your situation.

Property Owners Having Trouble Selling

Foreclosure Investors Wanting a Quick Turnaround

Professionals of Various Kinds

We will work with you to provide a tailored cash solution for your needs regardless of your situation. You may want to review the Note FAQ’s starting on page 16, and then call Kimberly at 615-887-1533 to discuss your needs. Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] How Can We Help You? S D R

Property Owners and Property Investors:

Are you having a tough time selling your property? Are you an investor who wants a fast turnaround?

We may have the solution you need to get the cash from your property more quickly!

If you are willing to attract buyers who do not have bank financing available to them, and offer them owner financing, we can assist you to create a note with the highest appeal to note buyers and then find a note buyer for you so that at a Simultaneous Closing for both the property sale and the note sale ( or a note sale closing date that suits you ), you receive cash for an owner-financed note on your property.

Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] How Can We Help You? S D R

What is a Simultaneous Closing? Part I

A Simultaneous Closing is a great process that benefits both the buyer and the seller of a piece of property.

The seller offers owner-financing to a buyer who is not able to secure funds from a bank or needs a closing date faster than a bank can provide.

The seller bases the financing on not only what will suit the property buyer, but on terms that will get noticed by note buyers willing to offer their best deal.

Then, at the closing for the property sale, an additional closing takes place – simultaneously – on the sale of the note to a note buyer who will give the seller cash!

What is a Simultaneous Closing? Part II

This is a win-win situation for both the property buyer and the seller, as the property buyer is able to secure the property they desire, and the seller is able to sell the property more quickly and still receive cash in hand.

For example, you have property that has been appraised at $200,000. A bank would typically lend in the range of $160,000 (80%) to a buyer. You can sell that property to the buyer for an owner-financed note in the amount of $200,000, then turn around and sell that note through us for an amount normally in the range of * $160,000 at a simultaneous closing that closes on both the property sale and the note sale at the same time.

What is a Simultaneous Closing? Part III

*The figures used in this example do not represent a guarantee. There are many factors involved in the valuing of a note, including the face value, rate, term, type of property, credit score of the payor, and others. For the best results, we can assist you based on your needs and the needs of your property buyer to create a note with the best terms that will get noticed by note buyers.

However, we can not guarantee that you will be offered any particular amount for your note. We are also not able to give legal or financial advice. If you feel you need the official advice of a legal or financial professional, please contact your attorney or CPA.

**** If you are considering this option, or have additional questions about how this works, call us today so that we can work with you to create a solid note and then secure a solid note buyer’s quote for you before you finalize a deal with your property buyer! *****

CPA

Financial Planner

Attorney

Builder

Developer

Contractor

Title Company Agent

Real Estate Agent

Real Estate Investor

Foreclosure Investor

Mortgage Broker

Appraiser

Bail Bondsman

Retirement Community Administrator, or

Other Professional?

Professionals: Are you a Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] How Can We Help You? S D R

As a professional who refers real estate note holders to us, we can help you in a variety of ways.

You can benefit from direct involvement in the deal through your line of business, i.e. a closing attorney.

You can benefit by assisting your clients to obtain cash flow. They may then be able to strike up more business with you.

You may be the kind of professional who can assist your client to wisely invest their cash.

Or you benefit by simply becoming a solid professional connection to whom I can send my clients when they need your particular service.

We would love to have a conversation with you about how we can be of mutual benefit to one another. Call us today and find out!

1. Will I receive the entire current balance on my note?

Many factors determine the cash offer on a note, including the interest rate, the term of the loan, the type of property and its market value, among others. However, since $100 today will buy more than $100 in the future, it is likely that the offer on your note will be less that the current balance, as cash received today on your note has more buying power than the cash you will receive in future payments . And the quote is free, so there is never any obligation to find out what your note is worth in cash today!

Call Kimberly Williamson today @ 615-887-1533 for a Free No-Obligation Quote [email_address] Note FAQ’s S D R

2a. Why would I want to sell my note for less than the current balance? Part I

Prices on goods and services continue to rise as time goes on, due to inflation. So $100 in cash today will have more buying power than $100 in the future. And purely for the sake of example, $100 today could have the same buying power as $120 in the future.

If your goal is not cash to spend, but cash for an investment, a similar principle applies. The principle balance on your note decreases over time so that the amount of interest you receive is less and less each month. In effect, the note’s earning power continues to decrease the longer you hold the note .

2b. Why would I want to sell my note for less than the current balance? Part II

However, if you invest a lump sum of cash at interest (say an insured government bond), your principle balance remains the same over time, and the interest you earn each month will never go down. If, however, your investment pays you “compound” interest (interest on both the original principle and the interest added the previous month), the interest you earn on that investment will continually go up!

In addition, a note is simply an IOU, or promise to pay, that may or may not happen; and when a note is paid in full, there is no more income. But if you invest cash in an insured investment at a fixed rate today, you will always have guaranteed income from your investment without ever touching the principle balance.

3. Are there any “out of pocket” expenses I will have to pay? All fees will be paid by the buyer, except in very rare cases. In that case, all potential obligations will be discussed with you before a deal is finalized.

4. When will I receive my money?

Approximately 30-45 days from acceptance of the offer. You will be paid at closing, when all documents have been signed and recorded. The closing and payment process is the same as when the note was created. We will do our best to meet your needs if an earlier closing is requested.

5. My note is not secured by a single family home, but by a condo unit, a duplex, an apartment complex, a mobile home, land, or commercial property. Can you handle my note?

Yes! We can assist you with the sale of any note secured by any form of real estate – commercial, residential, or land.

6. What about interest only loans, balloon payment loans, or second or third mortgage loans?

We can help you sell these loans, too! These are all forms of sellable loans.

7. Can I sell a newly created note? Or does it have to be a “seasoned” note? You can sell a new note. A “seasoned” note has been around a while, which gives it a payment history.

8. I only have a small note. Is it worth anything? Or I have a large note. Would anyone pay that much?

We can help you sell any size note – from very small to very large. The more important factor is the “loan to value” ratio or LTV. We will need all the details of your note to help us determine what price you may expect.

9. Can you help me sell a note if I live in another state?

Yes, we can handle a note from any U.S. state!

10. Can I sell only a portion of my note?

Yes, if you have a specific need for cash that may not require the entire cash price of your note, you can, for example, sell the next 48 payments of a note with 120 payments remaining. After 48 months, the 72 remaining monthly payments would revert back to you.

11. When I sell my note and receive my cash, how will it affect the person paying me?

It will not affect the person paying you at all. That person will continue to make all payments as before. The buyer will contact that person to notify them of the new payment address.

12. What are the tax obligations of selling my note?

We can not give you tax advice. However, we can give you a no-obligation quote for your note. Then you can take that offer to your CPA to discuss your tax liabilities. Your CPA may even find a way for you to lessen any tax liabilities you may have!

13. What should I expect when I contact you? When you contact us, you will be treated with respect and will receive professional and responsive communication from someone fully invested in finding the best cash outcome for your needs and situation. Call us today!

Our background is one of many hats in the project oriented world of real estate property management, lease administration, and lease accounting. Although we still offer those services, our primary focus is the business of creating cash now solutions for holders of real estate backed private loans, whether the notes are held by individuals or are created by investor financing.

With almost a decade of experience in the world of real estate and detailed education and professional coaching specifically in the business of creating cash now solutions for our clients, the owners of Strategic Resource Development bring knowledgeable professionalism you can count on.