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Here is a brief presentation on Norcal Company

Here is a brief presentation on Norcal Company

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Rfs Powerpoint Rfs Powerpoint Presentation Transcript

  •  
    • Reasons to Invest
    • Summary of Opportunity
    • About The Firm
    • Bios of Key Team Members
    • Investment Strategy I: Short Term Lending
    • Investment Strategy II: Long Term Lending
    • Strategic Differentiators
    • Risk Mitigators I: Short Term Lending
    • Risk Mitigators II: Long Term Lending Summary
    • Predecessor Fund
    • Achieving Our Goals
    • Fund Terms
    • Summary
    • Contact Information
    • Extensive background in real estate acquisition and finance funds:
        • East Bay Equity Investors #1, LLC, April 2004 to December 2007, $1.6m AUM, returned 38% net of fees;
        • East Bay Equity Investors No. 2, LLC, August 2004 to December 2008, $1.5m AUM, 18% net of fees;
    • Formed and managed several real estate acquisition and finance funds, including East Bay Equity Investors #1 and East Bay Equity Investors No. 2.
        • Combined $3m AUM
        • Returned average 38% net of fees since 2004;
    • Co-founded NorCal Rehab Funding LLC, an ABL fund where he is currently Chief Investment Strategist and Manager in Charge of Lending Operations;
    • Graduate of the University of Southern California (Management).
    • 24 years Sales and Business Development experience;
    • Licensed Loan Officer, Realtor, Mortgage Broker;
    • Founder/Broker Bluestar Financing, Inc. Rated #1 Independent Broker for investor loans in Contra Costa County, 2006;
    • Will serve as Fund Manager in Charge of Day-to-Day Operations, Chief Investment Strategist for RFS
    John Taylor
    • Began real estate career as full-time investor in 1998. Built extensive portfolio of multi-family units;
    • Founder of Wealth Classes, a nationally franchised real estate education company;
    • Began real estate career as full-time investor in 1998. Built extensive portfolio of multi-family units;
    • Founder of Wealth Classes, a nationally franchised real estate education company;
    • President and Co-Founder of The National Wealth Network, the largest Real Estate Investment Association in San Francisco;
    • National Speaker and recognized authority on investing in trust deeds and apartment buildings;
    • Co-founded NorCal Rehab Funding LLC, an ABL fund where he is currently Director of Major Business Relations;
    • Graduate of the University of California, Davis, B.S. in Engineering;
    • 10 years experience in software development positions with Microsoft, Intuit and Virage;
    • Will serve as Director of Major Business Relations Division for Fund.
    George Antone
    • Independent Facilitator for commodity and financial transactions for private equity firms and high net worth individuals (transaction size from $10m to $5b);
    • Facilitates funding for bulk REO acquisitions, bank instruments and commodities;
    • Joined Management Team for NorCal Rehab Funding, LLC, in 2007;
    • Executive Director of a HUD sponsored 501c3 Housing Center;
    • Graduated in 1983 from Arizona State University with a B.S. in Accounting and a Masters in Taxation at Golden Gate University, CA.
    • Corporate tax accountant of 23 years;
    • Worked as an International Tax Analyst for Chevron Corporation before retiring to pursue real estate and finance investments full time;
    • Will coordinate with Major Business Division to analyze large ($3m+) deals and facilitate REO package investments;
    Laura Keller
    • NorCal Rehab Funding, LLC
      • Asset Based Lending Fund, $2.3m AUM
      • Established May 2006
      • Period: 2+ years
      • Return: 10.02% historic, net of fees
      • Returns achieved with use of leverage, SAMs, in-house take-out financing or limited lending geography
      • Managed by John Taylor, George Antone, Laura Keller
    • Residential Funding Solutions and its GP Provide Unparalleled Transparency, Compliance and Accountability:
    • Quarterly and Annual Fund Reports Include Trust Account Status, Reconciliation & Balances, ERISA Membership Reports, Collateral/Underlying Loan Report, Mortgage Pool Statements, Partner Statements, Lender Statement of Account, Lender Investment Profile, Late Reports, Servicing Statistical Profile, Payment Projections;
    • Quarterly and Annual Financial Reports and Annual Financial Audit prepared by third-party accounting firm of Sterck, Kullick O’Neal;
    • Quarterly Newsletter detailing all Fund developments prepared by Fund Manager;
    • John Taylor, Fund Manager & Broker of Record (DRE License #01784703) compliant with all Threshold Lender regulations – reports available online;
    • 94%+ of all capital secured by trust deeds - all trust deeds written by Fund available online or at County Recorder’s Office.
    • Our Focus: The Financing of Distressed, Non-Owner Occupied, Single Family Residential Income Properties in Targeted Counties Throughout California:
    • Properties:
      • Over 400,000 bank owned SFRs in the state, will increase by 16% in 2010;
      • Additional distressed properties include pre-foreclosures, tax defaults, short sales, structural and cosmetic deficiencies;
    • Geography:
      • SFRs can cash flow in California for first time in three decades;
      • CA property values and overall economy appreciate faster than U.S.;
    • Demographic:
      • To chose lending areas, Fund analyzes empirical data on Population Stability & Growth, Job Growth, Household Income, Asking Rents, Vacancy Rates, Inventory, Foreclosure Rates and Home Price Affordability.
    • Our Mission:
    • Provide Safety, Transparency and Solid Returns
    • For Our Real Estate Funds’ Investors.
    • Managing Partners have decades of combined experience in Asset Based Lending (ABL), Acquisition and Improvement Lending (A&I), Single Family Residential (SFR) & Multi-Family Rehab, Mortgage Brokering & Banking and Private Equity;
    • Predecessor Fund, NorCal Rehab Funding, LLC , returned 10.02% IRR net of fees with $2.3m AUM between October 2006 and October 2008;
    • GP has instituted significant changes in strategy for the new fund to integrate lessons learned from Predecessor Fund and to meet current market challenges.
    NorCal Capital Management, Inc, General Partner
    • Asset Based Lending (ABL) Fund providing turn-key financing solutions to niche market of “buy & hold” borrowers for purchase of distressed, 1-4 unit, residential income properties throughout California;
    • Loan products feature both debt and equity financing;
    • Unique underwriting and asset valuation process ensure low-risk;
    • Five (5) year, closed end fund seeking $100m and targeting 15.08% IRR, gross cash-on-cash returns of 1.98x and 15% distributions of cap. contributions in years three (3), four (4) and five (5);
    • GP is NorCal Capital Management LLC, whose predecessor fund earned 10.02% net of fees.
    • 6-month balloon note secured by first deed of trust;
    • Interest-only payments at 12% and 6 points;
    • Loan amount includes both acquisition and improvement costs;
    • Available only for non-owner occupied, 1-4 unit single family residences targeted as rental properties (can include condos, townhomes PUDs);
    • Loan amounts based on 60% or less of the after-repair value .
    Provide Short Term Loans to Borrowers Seeking to “Buy & Hold” Distressed, 1-4 unit Single Family Income Properties:
    • Providing Borrowers Long Term Financing to Realize Property Appreciation:
    • 3 to 5-year term with monthly adjustable interest rate (Target: 7.5% and six points);
    • Loan amount based on a max 65% of the asset’s after-repair value, secured by a 1st deed of trust (loan can feature rehab component as well);
    • Deed of Trust is a Shared Appreciation Mortgage (SAM) that entitles Fund to 20% to 50% of the collateral’s appreciation (minimum 20% - higher rates based on risk, deal flow, etc);
    • Creating a “one-stop” financing solution by providing borrowers a short term loan for purchase and rehab and a long term loan for positive cash flow rental income and property appreciation;
    • Obtaining equity positions in Single Family Income Properties by utilizing SAMs;
    • Focusing on under-serviced market of distressed, SFR income properties;
    • Using Cash Flow Valuation policy on underlying collateral and “Full Doc” underwriting guidelines to reduce default risk;
    • Using empirical data to target the best lending regions in California to increase returns and reduce risk;
    • Short Term Loans:
    • 60% max LTV, 1 st position deed, 6-month balloon note;
    • All interest paid by borrower upfront in reserve account;
    • Borrower-based underwriting criteria – no subprime. Borrowers pre-qualified for take-out financing before receiving RFS loan;
    • Valuation of asset based on property’s ability to generate positive cash flow as a rental income property;
    • Long Term Loans:
    • 1 st position deed at maximum 65% loan to value;
    • All loans have a target Debt Service Coverage Ratio of 1:1.2, ensuring that rent payments will cover mortgage;
    • Same underwriting and valuation process as Fund’s Short Term Loan – all borrowers “A Paper” quality;
    • Loans managed within 100-mile radius of Fund’s office;
    • Highly Experienced Team With a Successful Track Record in Sector;
        • Predecessor Fund had historical yield of 10.02% net of fees;
        • GP has decades of combined experience in mortgage brokering, banking and real estate investment;
    • Strong Potential Returns ;
        • Target IRR of 15.08%;
        • Cash distributions at a target 15+% beginning year three;
        • Equity position in properties could result in higher returns;
    • Low Risk, Asset-based, Alternative Fund;
        • 94% of all capital contributions secured by 1 st deed of trust on real property at minimum 40% under market value;
        • Low correlation to stock market, low volatility market, low risk strategy, highly transparent fund and GP;
    • Equity Benefits Without Hassles of Ownership;
        • Shared Appreciation Mortgages create interest & point income and on-going equity position;
    • 5-year, closed-end Limited Partnership. All capital recycled years 1 and 2;
    • General Partner is NorCal Capital Management, LLC
    • Seeking $100m, fully capitalized by EOY 2009;
    • Minimum investment: $1m;
    • Capital Draws of approx. $60m in Year 1, $40m in Year 2;
    • Target 15.08% IRR and net cash-on-cash returns of 1.94x;
    • Distributions of targeted average 15% of capital contributions beginning Year 3, paid quarterly;
    • Wrap-up at end of Year 5 should take less than 6 months;
    • No redemptions until wrap-up;
    • 2% annual Management Fee, half of which is reinvested in Fund on behalf of GP. No Mgmt. Fee in years 4 and 5;
    • 10% annual Performance Fee with 5.5% Hurdle Rate;
    • An Opportune, Alternative Investment: Fund has no ties to stock market volatility and provides financing niche that’s increasingly scarce;
    • Creative Income Generation: Loan products feature both debt and equity financing;
    • Low Risk: Unique underwriting and asset valuation process mitigates risk;
    • Excellent Potential Return : 5-year, closed end fund seeking $100m and targeting 15.08% IRR, net cash-on-cash returns of 1.94x and 15% cash distributions starting year 3;
    • Exemplary Performance and Experience: GP’s predecessor fund earned 10.02% net of fees while market values in California dropped 47% during same period.
  •