* * ## Now let’s talk through an example. Let’s say you have funds to invest – either in a retirement account, or you, your family, or your company has extra cash that you want to put to work. We find a house that we want to buy, that matches your investment criteria and we provide you with all of the details – the purchase price, repairs needed with estimates of costs, comparable sales, estimates of the after-repaired value, and other details to help you evaluate the property and potential investment. If you approve of the deal, we provide you with four documents to secure your investment – which I’ll discuss in detail in a minute. With those funds, we purchase or put a second mortgage on the house, then we renovate it. During this time you are earning 10% interest on your investment. When the renovation is complete, we either lease option, sell, or refi the property. When we sell or refinance the house, you get your principal and interest paid back into your account as part of the closing. And (especially if you’re lending from a retirement account), we will probably want to re-invest the cash for another round.
* * ## Slide 21
* * ## Here is an example that compares the earnings on a $15,000 loan – where you can earn about 4% interest with a bank, versus 10% with one of our houses. You literally make as much in less than 5 months at 10% than you do in a full year with the 4% rate. Conversely, you make 2 ½ times as much at 10% that you do at 4%. Even if there is an early withdrawal penalty with your investment (like a CD) the return at 10% will often (more than) cover it in the very first year.
* * ## Slide 13
* * ## If you were to make an investment that pays off in a year, and then you take that principle and interest and re-invest it, look at the difference in the return on that initial $15000 if you were to do that over 6 years!
* * ## With this investment, you’re protected in four ways. Let’s say you invest $50,000 in a home valued at $75,000. First you’ll get a security deed, or mortgage, for $50,000, which is a lien against the property. That means you’re the bank. You’re in control. You’ll also get a promissory note with the terms of the loan, signed at the closing, that will state your interest rate, length of the loan and payment terms. Third, you’ll get Lenders Title Insurance, insuring your interest in the property. And last, you’ll receive a certificate of homeowner’s insurance naming you as the additionally insured lender, protecting you against loss. Doesn’t this sound more secure than the stock market?
* * ## If you have an old 401K from an old employer that is just sitting out there without much attention from (or earning much for) you, or if you have an IRA – you can use these retirement vehicles the invest in real estate. There are many custodians out there that can handle investments in real estate. For example, Equity Trust Company will handle the transfer and has all of the forms online for you.
* * ## If you have one of those accounts and want to roll it over into one of these accounts, we can help you, or you can check it out online. If you think you’d like to do this, go ahead and check out some of these sites and begin the process of transferring your funds. This is a tax-free transaction if you do not take control of the money – there are certain rules – make sure you check with your CPA. And you see the types of accounts that you can have with these custodians to invest.
* * ## And what is the term of your investment? Well, it can be almost any term you want. You can pick a term that suits your investment strategy. You’re the boss. If the funds are in your I-R-A, then you’ll probably want to invest for the long term, because you won’t be using those funds until retirement. Or if you’re switching from a mutual fund or CD, maybe you want to invest for 24 to 36 months. It’s your money and your choice. And of course, we’ll come to you with an investment term that suits your requirements. Now, what happens if something unexpected happens and you need to liquidate? You can certainly do so. All we ask is that you give us a few weeks to replace your investment, but you won’t be required to take a discount when you cash out, like you would with a CD. Note that you really shouldn’t make mortgage loans if you plan to liquidate shortly, but that option is always available. And unlike the banks, there is no pre-payment penalty when you withdraw funds early.
Notice Please carefully consider Alliance Property Investments LLC's investment objectives, risks, and associated costs or expenses before investing. Real estate investments are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and ask for more information before you consider any investment.
<ul><li>We are a Limited Liability Company with four members </li></ul><ul><li>Starting in early 2007 with the purchase of a bank owned single family property. Since that first purchase, we have become a serious real estate investment firm located in the Gwinnett county region </li></ul><ul><li>We acquire, rehab, and lease or sell both residential and commercial real estate </li></ul><ul><li>We hold properties both short and long term </li></ul><ul><li>Currently we hold 8 properties worth over $2.3 million in asset value </li></ul><ul><li>We utilize a Licensed General Contractor who has 30+ years of service in the community </li></ul><ul><li>We contribute a percentage of our profits to the Leukemia Lymphoma Society </li></ul>Alliance Property Investments LLC Company Profile
<ul><li>We are very focused in a small geographic area and know the values in our market much better than the sellers, realtors and, in most cases, our competition </li></ul><ul><li>This extensive knowledge and our private funding gives us the leverage to pay cash and drive bargains and profits for us and our investors </li></ul><ul><li>We leverage a large network of real estate investors through the Georgia Real Estate Investors Association to help grow our business. </li></ul><ul><li>We are ever changing and always looking for ways to improve to business strategies. Whether that is evaluating other market segments, looking at creative acquisition strategies or using building materials that will differentiate our products and services from our competition. </li></ul>Alliance Property Investments LLC Core Strengths
<ul><li>We buy and sell 2 to 5 houses per month </li></ul><ul><li>To fund our deals we generally pay cash or we use investor loans from banks that lend 70% to 80% of value of the loan and borrow the balance from private individuals </li></ul><ul><li>Or we borrow 100% of the purchase price from private individuals </li></ul><ul><li>We pay private investors 10% simple interest secured by real estate </li></ul>Alliance Property Investments LLC What we do
<ul><li>Our marketing program enables us to find potential sellers as well as agents who market REO (bank owned) properties </li></ul><ul><li>We negotiate to buy a house that is typically 30% to 55% below market value </li></ul><ul><li>At closing, we borrow from private investor(s) to purchase the property </li></ul><ul><li>Private investors get a mortgage and insurance as security </li></ul><ul><li>We make payments to you on the scheduled dates </li></ul>Alliance Property Investments LLC Private Mortgage Program AllianceMoneyPartner.com
At a formal closing, you receive four documents to secure your investment We purchase and renovate the house We sell or refinance the house We pay off your loan including 10% simple interest earned 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 Alliance Property Investments LLC How it works AllianceMoneyPartner.com SOLD!!
<ul><li>Can you answer yes to ONE of the following questions? </li></ul><ul><li>Do you have a JOB ? </li></ul><ul><li>Do you have an under performing 401k or IRA ? </li></ul><ul><li>Do you invest in the STOCK MARKET ? </li></ul><ul><li>Do you invest in CD’S (Certificates of deposits) </li></ul><ul><li>Do you have CASH ? </li></ul>Alliance Property Investments LLC Investment Options
Rate 12 Month Earnings 4.0% $ 600 10.0% $1,500 You make as much in ONE year at 10% as you do in 2.5 years at 4% Alliance Property Investments LLC Example of $15,000 Investment
Alliance Property Investments LLC Bank CD’s vs. Our Program Source: BofA, Wachovia, Citigroup,Suntrust Institution Name Term Rate Example (Difference from API Investment of $100,000) Details CitiGroup 12 mo 2.4% -$7,600 * Minimum opening deposit is $500. Penalties apply for early withdrawal Bank of America 7 mo 1.85% -$8,150 *$5,000 minimum opening balance. Wachovia 14 mo 1.95% -$8,050 *$5,000 minimum opening balance. Suntrust 8 mo 2% -$8,000 *$5,000 minimum opening balance. Alliance Property Investments 1yr 10% $10,000 * Early withdrawal available at no additional fee
Reinvest the principle and interest each year and you earn over $8500 more over 6 years $15,000 Invested at 3% $15,000 Invested at 10% $8663.21 Alliance Property Investments LLC Compound Interest Year Principle Rate Interest Total 1 15000.00 3% 450.00 15,450.00 2 15450.00 3% 463.00 15,913.00 3 15913.00 3% 477.41 16,390.39 4 16390.39 3% 491.72 16,882.10 5 16882.10 3% 506.48 17,388.56 6 17388.56 3% 521.67 17,910.22 Principle Rate Interest Total 15000.00 10% 1500.00 16,500.00 16500.00 10% 1650.00 18,150.00 18150.00 10% 1815.00 19,965.00 19965.00 10% 1996.50 21,961.50 21961.50 10% 2196.15 24,157.65 24157.65 10% 2415.77 26,573.42
<ul><li>Four Documents </li></ul><ul><ul><li>Security Deed or Mortgage </li></ul></ul><ul><ul><li>Promissory Note </li></ul></ul><ul><ul><li>Lender’s Insurance </li></ul></ul><ul><ul><li>Hazard Insurance </li></ul></ul>Alliance Property Investments LLC How is your loan secured?
<ul><li>We can help you earn a TAX FREE retirement income using self directed IRA accounts that permit you to make high yield loans secured by real estate. </li></ul><ul><li>Rollover your old 401k or IRA to a custodian that allows investment in Real estate </li></ul><ul><li>Custodians </li></ul><ul><ul><li>Equity Trust </li></ul></ul><ul><ul><li>Pensco Trust company </li></ul></ul><ul><ul><li>Entrust </li></ul></ul>Alliance Property Investments LLC Do you have an old 401k or IRA?
<ul><li>Paperwork is online or we can handle the transfer </li></ul><ul><ul><li>Direct transfer means no tax impact </li></ul></ul><ul><li>Fees comparable to other custodians (ex. Fidelity, e-trade) </li></ul><ul><li>Takes about 10 days to transfer funds </li></ul><ul><li>You can invest IRA, Roth IRA, Simple IRA, and Simplified employee Pension (SEP) accounts </li></ul>Alliance Property Investments LLC 401k/ IRA cont…
<ul><li>Term is Negotiable </li></ul><ul><ul><li>Flexible to fit your investment need </li></ul></ul><ul><li>Most IRA holders invest for longer terms </li></ul><ul><ul><li>24-36 months </li></ul></ul><ul><li>If you need your money back quickly? </li></ul><ul><ul><li>Give us a couple of weeks to replace your investment with another lender </li></ul></ul><ul><ul><li>There is no early withdrawal penalty </li></ul></ul>Alliance Property Investments LLC What if need my money back?
How Do We Proceed! <ul><li>Please Call Jason Fetrow @ (404)825-6733 </li></ul><ul><li>Or visit our website at </li></ul><ul><li>www.APIhomefinder.com </li></ul>