Private lending 5-15-11


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Private lending 5-15-11

  1. 1. Private Lending<br />Secured<br />Hassle-Free<br />Superior Yields<br />
  2. 2. Too Good To Be True?<br />No! To borrow money from “hard money” lenders, we have to pay<br />12.5% interest<br />3.5 points up front (=3.5%)<br />$1,1096 processing fee.<br />$375 appraisal fee<br />Borrowing from you at 10% saves usclose to 7%.<br />
  3. 3. Welcome<br />Our company is Ultimate Venture LLC, founded in January 2010.<br />We acquire, rehab and sell homes by buying for cash.<br />The corporate partners are David Stuard and Sheila Kirkland.<br />On all REO’s Banks only accept cash, no financing, only cash. This is why we ask you to join us<br />
  4. 4. Introductions<br />David Stuard, manager<br />Sheila Kirkland, partner, financial manager<br />Eric Townsend, Esq., Attorney<br />Anne Clark, Director of Operations<br />Lorraine Wright, Chief Property Analyst<br />James McKinney, Accountant<br />
  5. 5. Why “Ultimate” Venture?<br />We feel that real estate provides:<br />The ultimatelong-term appreciation.<br />The ultimatelong-term security.<br />
  6. 6. Thanks for coming.<br />Are you tired of Low Bank Rates?<br />You can do much better than Bank CD’s. <br />Learn today how you can make10% on your money.<br />
  7. 7. Bank CD Rates (approx.)<br />
  8. 8. How Does Your Bank Make Money?<br />They take in Money for CDs (Yours).<br />Then they lend the money out at a higher rate of interest to other people to buy houses.(We’re eliminating the bank, offering private lending.)<br />
  9. 9. Private Lending Program Overview<br /> To buy houses, we prefer to borrow money directly from private individuals such as you.<br />We pay you 10% to use your money.<br />We save almost 7% by not having to borrow from hard money lenders.<br />This is a win-win situation.<br />
  10. 10. Private Lending ProgramHow it Works<br />We locate a property we want to buy.<br />We contact you and invite you to invest in this property.<br />Your funds will be wired directly to a trust account by you and only you.<br />Upon entering escrow, your funds will be transferred directly to an escrow account.<br />At close of escrow, you will receive the first or second trust deed to the property. <br />When the property is sold your principal and interest is wired back to you.<br />
  11. 11. Documents Securing Your Investment<br />Trust Deed on the Property and a promissory note.<br />Title Insurance.<br />Hazard Insurance (fire, theft, etc.)<br />Written Appraisal before the renovation.<br />Written appraisal after the renovation.<br />
  12. 12. Primary Investor Example:$200,000 Loan<br />$200,000 x 10% annual interest = $6,666.67 for 120 days (4 mo.)<br />You receive a first trust deed and a promissory note.<br />Principal and interest are wired back to you at close of sale after rehab.<br />You may repeat the cycle. <br />
  13. 13. Secondary Investor Example:$50,000 - $100,000 <br />$50,000 x 10% annual interest = $1,666.67 for 120 days (4 mo.)<br />You will receive a second trust deed and a promissory note.<br />Principal and interest are wired back to you at close of sale after rehab. <br />You may repeat the cycle.<br />
  14. 14. How Can We Buy Houses So Far Below Market Value?<br />Our specialty is “distressed” houses that usually require major renovation. We see value in homes that others don’t see.<br />We buy directly from banks who desperately need to sell these homes.<br />We buy homes at foreclosure auctions.<br />We pay cash.<br />
  15. 15. Money we borrow is no more than 75% of the value of the home after renovation.<br /> This gives you additional security, because we don’t over-leverage the property.<br />Your BIGGEST Concern:Protection of Principal<br />
  16. 16. There is always Plenty of Equity Above Your Investment.<br />$300,000 ARV<br />25% cushion<br />$225,000 Maximum Loan (75% of ARV)<br />This provides a 25% cushion for the investor.<br />
  17. 17. How We Make Sure the House Sells<br />If a home does not sell within 60 days of close of escrow, we do the following:<br />Offer a substantial incentive bonus to the agent to sell the house.<br />Reduce the selling price.<br /> A reduction of up to 25% would still recover the investment – because we buy only houses that give us a cushion (discount) when we buy them.<br />
  18. 18. What Happens to My Investment if David Dies?<br />The property will be sold and you will receive your principal and interest as agreed.<br />Your loan is still secured by the property.<br />This will be spelled out in your contract.<br />
  19. 19. Other sources of funds:IRA Money<br />You can invest your IRA funds in real estate and protect your profit from taxes.<br />It’s simple and easy.<br />A financial institution that offers this program is located in Irvine, CA:Entrust Group, Irvine, (949) 788-2970<br />
  20. 20. You’re in Control <br />Visit an IRA custodian who handles real restate investments of IRA funds.<br /><ul><li>Entrust Group, Irvine, (949) 788-2970.</li></ul>You can roll over IRA funds to Escrow to invest in real estate.<br />You Earn 10% annual interest.<br />When the house sells (closes escrow), your funds are transferred directly back to your IRA account.<br />
  21. 21. Do you have a Whole Life Insurance Policy?<br />Borrow your Cash Value, which is now earning low CD rates of return.<br />Invest the funds with Ultimate Venture LLC to buy real estate with us.<br />Earn 10% on your investment. <br />
  22. 22. Our Competitive Advantage<br />Buying with cash.<br />Buying REO’s directly from banks. <br />Buying Foreclosures at trustee sales.<br />Buying in working class neighborhoods where the residents have jobs.<br />Using quality materials, such as granite, resulting in “like-new” homes. <br />Putting “For Sale By Owner” signs up as soon as the front yardis presentable.<br />We pay neighbors an incentive bonus for referring potential buyers.<br />
  23. 23. Who Sells Us Houses?<br />Banks<br />Auctions – at court house steps.<br />Private Individuals<br />REO* Listing Agents<br />Realtors*REO = Real estate owned by a bank.<br />
  24. 24. Why San Diego?<br />Best for entry-level homes. <br />One of the “ten best places to live” in California.<br />Perfect weather year-round.<br />
  25. 25. Company Growth Plans<br />Purchase 3-4 homes a month.<br />Expand into multi-family units and small apartment buildings.<br />Offer Lease Options and buy rental properties.<br />Commercial properties for long-term cash flow.<br />
  26. 26. How to Find Us<br /> Location:<br />2400 Via Mariposa West, Suite 1C<br />Laguna Woods, CA 92637<br />Phone (949) 340-0290<br />Fax (949) 340-2516<br />Email:<br />Website:<br />
  27. 27. Houses Purchased<br />Three of our 31 completed projects are featured on our website. All projects were profitable.<br />The pages include financial information, such as purchase price, rehab cost, and sale prices.<br />