STORY - BOB CASE, THE MAN WHO NAMED THE PERFECT STORM— The conditions were "perfect" for a monstrous storm, a meteorological time bomb that would explode in the northern Atlantic Ocean creating waves ten stories high and imperiling the New England fleet.This was the assessment of Bob Case, a NOAA National Weather Service meteorologist at the Boston, Mass. forecast office, who, with his weather service colleagues in late October 1991, began warning the public of a storm that would take on epic proportions."It was an unprecedented set of circumstances," the now-retired weatherman said. "A strong disturbance associated with a cold front moved along the U.S.-Canadian border on October 27 and passed through New England pretty much without incident. At the same time, a huge high pressure system was forecast to build over southeast Canada. When a low pressure system along the front moved into the Maritimes southeast of Nova Scotia, it began to intensify due to the cold dry air introduced from the north," according to Case."These circumstances alone, could have created a strong storm," Case said. "But then, like throwing gasoline on a fire, a dying hurricane Grace delivered immeasurable tropical energy to create the perfect storm."NOAA black and white satellite image of "Perfect Storm"With all of the contributing factors coming together at just the right time, in less than 24 hours, the storm exploded to epic proportions and then headed toward the coast," the meteorologist said, adding that if any of the components were out of sync, the epic storm would not have happened."
1. Disclaimer: This is a confidential document and is not intended to be a public
offering of a security in any way. You and Vandora Capital, LLC need to have had a
pre-existing relationship in order to proceed. If this does not apply to you, please
stop reading now. All projections on returns represented within are just that:
projections. Past performance is not necessarily an indication of future results. Real
Estate can be risky and you are advised to do your proper due diligence before
moving forward on any and all investment opportunities.
2. VANDORA CAPITAL, LLC
A private equity firm providing
short-term capital on real estate
investment projects secured by
mortgages or deeds of trust.
3. Vandora Fund Managers
4. Jeremy Crutchfield
Mr. Crutchfield attended the University of Georgia’s prestigious Terry College
of Business and graduated with a degree in Finance in December of
2000. Originally considering a position as an options broker on Wall Street, he
began re-evaluating his occupational field when the dot-com bubble burst
earlier that same year.
Looking to apply his knowledge of finance in something other than the stock
market, Mr. Crutchfield turned towards real estate investment in his hometown
of Atlanta, GA. He has been actively involved in REI ever since, owning rental
properties, overseeing renovations, wholesaling deals to other investors, and
more recently, marketing information products to investors seeking to learn
how to execute various investment strategies and technologies.
Mr. Crutchfield has been aggressively working the Las Vegas investment
market since 2009, spending half his time in Atlanta and the other half in
Vegas. He initially organized and ran investor tours with a focus on acquiring
affordable opportunities at the trustee auction sale, back when this was still a
viable strategy. He has called Las Vegas his full-time home since January of
5. Anthony Ricciardo
Mr. Ricciardo was honorably discharged from the U.S. Navy in 2001 and has a B.S. in
Mathematics with a Business/Computer Science concentration from Penn State. For
over 10 years, he has worked in the real estate investment industry, developed
financial models, and worked with the latest technology to streamline productivity.
Early in 2002, Mr. Ricciardo began working in the real estate investment industry in
Atlanta, GA. He bought and sold properties to investors, owned rental properties,
oversaw renovations, and was a licensed real estate professional in Georgia. His
primary focus was to help identify and reduce potential investment losses while
developing plans for recovery. Always thinking ahead, losses were avoided by
offsetting risks by valuing and utilizing available equity efficiently.
In 2010, Mr. Ricciardo sought to learn more about the financial markets and began
day trading the stock market with a proprietary firm. After trading full-time for 12
months, he began revisiting the real estate investment industry. With a new view on
the real estate market, he was compelled to move to Las Vegas near the end of 2011
as strategic positioning.
6. Mr. Crutchfield and Mr. Ricciardo
Jeremy and Tony first met in early 2002 and began working together at
the highest volume real estate investment firm in Atlanta, at the time.
They worked side-by-side while learning the real estate investment
industry and successfully completed 812 transactions in just a few
short years. They grew to be very good friends and happened to share
the same view points on how business should be ethically conducted.
When the economy markedly changed, the two found themselves
pursing different paths in different parts of the country. However,
they continued to maintain their friendship and stayed in constant
communication with each other. Recently, the two became aware of a
huge demand for financing, so they reunited as business partners in
Las Vegas, NV and formed Vandora Capital in January of 2012.
7. The Other Players
- HUD/FannieMae/FreddieMac/Foreclosure Lender
- Non-Profit Organization
- Community Reseller/Real Estate Broker/Renovator
- First Time Homebuyer/Investor Buyer
- Title Company
- Mortgage Broker
8. Why Are We Providing Capital?
- There is a huge demand for financing houses that is not currently
- Without Vandora Capital, houses sit vacant and unrepaired in the
foreclosing lender’s inventory that drag down home values
- When Vandora Capital comes in as the new lender, everyone
involved is able to greatly assist in the “Revitalizing America”
program by converting the houses to like-new, livable condition and
selling them to first-time homebuyers
- Vandora Capital is able to earn very nice returns by providing this
9. Why Are We Providing Capital?
This helps everyone involved, including:
- The bank, who originally foreclosed on the property by removing it
from their books and providing them tax benefits
- The Department of Housing and Urban Development, Fannie Mae,
and Freddie Mac, who had insured the loan
- The Non-Profit Organization, who is financed by Vandora Capital
and enables the non-profits humanitarian efforts to continue
- The former home builders and contractors, who again have work
- The first-time homebuyer, who is able to get a new, low-down
payment and low-interest loan on the house after being renovated
10. The Perfect Storm
11. The Perfect Storm, as it applies to us
- The real estate market saw a tremendous housing boom and bubble in the
- Foreclosures increased at an unprecedented level over recent years
- Home prices are over-corrected, being sold below the cost of construction
- Interest rates are at all-time lows, so homes are more affordable than ever
- Homebuyers have difficulty getting loans on houses that need renovation
- Foreclosing lenders have tried and failed miserably to correct the problem
- Banks are not in business to own real estate, but to make loans instead
- Lenders receive tax benefits by selling the houses to a non-profit (NPO)
- The NPO is given the first right of refusal of all the houses from HUD
- The NPO takes a small, 5% transaction fee for acquiring each house
- This leaves the majority of profit to Vandora Capital for providing the
12. Without all of these events, this
opportunity wouldn’t exist…
13. Why this Perfect Storm is so powerful
for YOU as a Capital Partner
- Because rates are so low, home ownership is more affordable than
- This is fantastic for borrowers getting loans on houses, but horrible
for depositors who have their money in CDs, money market, or
- Clients are lucky if they are earning more than 1% on their passive
- Vandora offers a better opportunity with higher than average,
14. What are you currently earning on your
15. Highest CD Rates as of 2/23/2012
16. Best Savings Account Rates as of 2/23/2012
17. % Return on Various Investments
18. If Vandora Capital can show you how
to earn a MUCH higher passive return,
that is both SAFE and SECURE, would
that interest you?
OF COURSE IT WOULD…
Vandora Capital Investment
Vandora Capital lends money on real estate investment projects with better
than average returns and earns the majority of profit by being an equity
partner. This is why Vandora is NOT a traditional hard money lender, but a
private equity participant in this strategy.
Currently Vandora is working with a national non-profit who is chartered to
revitalize homes across the U.S., increase values in neighborhoods, and
convert more people into home owners. The focus is to help the non-profit
by loaning them the money needed to fulfill their mission on individual
homes in select communities.
Vandora Capital Investor Partners (YOU) are those who provide the funds
necessary for Vandora to execute its strategy and earn above average
21. The Process
1. HUD provides a long list of foreclosed properties to the Non-Profit that
are not currently listed on the market. They are incentivized because they
receive a tax benefit for selling the properties to a NPO. So, the first right
of refusal goes to the NPO, and they are encouraged to buy as many
properties as possible.
2. Out of that long list of available properties, only a small percentage
make sense from an investment perspective, because the list comes with
non-negotiable, take-it-or-leave-it prices. A real estate broker with a long
track record (selected by the NPO) is designated as a Community Reseller
and is responsible for combing through the available houses, performing
an initial analysis, and selecting only those properties that make sense “on
3. The Community Reseller sends renovators to the selected properties and
rules out the ones that need too much renovation or don’t have enough
proper curb appeal for the NPO to execute their strategy.
22. The Process
4. The Community Reseller then reports back to both the Non-Profit
(NPO) and Vandora Capital with their short list of properties that have
been selected as viable opportunities. This revised list ranges anywhere
from 3 to 10 properties per week in the Las Vegas market.
5. At this point, Vandora Capital does their own analysis on the selected
list of properties, and chooses which ones to provide financing for. What
this means is, Vandora Capital is only loaning on the very best
6. Once Vandora pinpoints a viable property to finance as an excellent
lending opportunity, the necessary funds are earmarked and prepared to
be sent to the title agent’s escrow account. Vandora reviews the real estate
closing with the title company and disburses funds based on the
instructions provided by Vandora. This ensures that each loan is handled
properly and the necessary documents exist to protect the investment.
23. The Process
7. Once the title agent receives the wire, those funds are used to finalize
the purchase of the property by the Non-Profit. The funds are secured as a
loan, with the Non-Profit as the borrower. A promissory note, capital
partnership agreement, and deed of trust on the property are provided to
Vandora Capital as collateral. The funds needed for renovations are also
disbursed to the Community Reseller at this time.
8. When required, Vandora sends the required loan documents to their
licensed and bonded Mortgage Broker to file with the appropriate
9. The property is now owned by the NPO and renovations are
immediately initiated to bring the house to like-new condition again.
10. The house is marketed to First-Time Homebuyers, as well as Investors
seeking quality, income-producing properties.
24. The Process
11. Offers on the property are generated and evaluated. A Buyer is
selected and accepted based on advantageous terms and
12. The property is resold to the new buyer. Funds from cash or their
loan are used to pay off Vandora Capital’s note and deed of trust.
The payoff includes both the principal amount as well as profits.
13. The title company then wires the funds back to Vandora.
14. The process is repeated.
25. Multiple Levels of Protection
- Vandora receives a Capital Partnership Agreement, Promissory
Note, and Deed of Trust as collateral against the property. The
property cannot be sold without Vandora being paid off first.
- Vandora Capital oversees every transaction to ensure that each loan
is funded properly with the appropriate set of documents in place to
protect the investment. Vandora Capital provides very specific
instructions that are agreed to in advance before funds are disbursed
for a closing.
- Real Estate values are currently below the cost of construction where
Vandora operates and only houses that are well below current market
value are being chosen. Our experience shows that the likelihood of
values going lower than these amounts within 90 days is close to
26. Multiple Levels of Protection
- Vandora Capital only funds the properties that are cherry-picked as
the very best, low-risk opportunities.
- Vandora is diversified over a portfolio of loans at any given time, so
even if one opportunity turns out to be marginal, Vandora has an
added level of protection to ensure the principal, at risk amount is
- Vandora Capital and the participating non-profit have common
interests to ensure each project is successful.
27. Vandora Capital Returns
- The investors retain 80% of the Vandora Capital performance
- Each individual property will have a unique profit, some more, some less
- The time from acquisition to disposition will affect the return
- Average turn times will be from 60 to 90 days
- On an annualized basis, the returns are substantial
- The model does not account for compounding of capital, which can
significantly increase returns
Note: A detailed pro forma follows this
28. Becoming a Capital Partner Investor is
not right for Everyone
- Vandora is working with Capital Partner Investors who are
committing to a minimum of $500k or more.
- This opportunity won’t be around for forever. A window of
opportunity exists now to be able to effectively capitalize on this
Perfect Storm of events and build a track record.
- Vandora will not work with just anyone. If you are looking for a
more hands-on investment opportunity, then this is probably is not
for you. Vandora is responsible for analyzing properties and
making the loan decisions and placing funds.
29. For further inquiries or to get
started now, please contact: