Hardmoney slideshow 8 12 11-1

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Sunwest Capital, Private Money Lending, Orange County, California, Commercial, Investments

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Hardmoney slideshow 8 12 11-1

  1. 1. Sunwest Capital Lending YOUR SHORT TERM LENDING SOLUTION PRIVATE MONEY LENDING PRESENTATION
  2. 2. •  Nonconforming
direct
lender
with
over
100
years
combined
 experience.
•  We
have
a
proven
track
record
of
delivering
performing
safe
 trust
deeds
to
our
investor
community
since
1975.

•  Reliable
top
producing
AEs/Ops
providing
strong
 communica;on
skills
and
work
ethic.

  3. 3. QuesDon:
What
is
Private
Money
Lending?


Answer:
Equity
based
lending.
•  Private
money
uses
a
high
wealth
individual
that
is
interested
 in
making
a
be>er
than
bank
return
on
his
investment.
•  Most
banks
are
paying
less
than
1%
on
savings,
CD’S,
etc.

 With
private
money
an
investor
can
make
8.5%‐13.00%
by
 funding
a
note
for
a
borrower.

  4. 4. QuesDon:
How
does
Private
Money
work?
Answer:
•  With
some
basic
informa;on
we
can
get
 you
a
quote
for
your
client.
•  This
is
ONLY
a
quote
that
is
usually
a
 range
and
this
quote
could
change
upon
 receipt
of
a
complete
package.
•  Upon
receipt
of
a
complete
package
we
 find
an
individual
investor
who
likes
the
 loca;on
and
condi;on
of
the
property
 but
most
of
all
he
likes
the
return
he
can
 receive
on
the
note.

•  That
individual
investor
funds
the
loan… NOT
an
ins;tu;on.

  5. 5. QuesDon:
How
does
Private
Money
look
at
the
credit
package?
Answer:
Unlike
INSTITUTIONAL
LENDERS,
PRIVATE
MONEY
has
less
restric;ve
guidelines
for:
•  INCOME
•  CREDIT
•  FICO
•  RESERVES
•  SOURCE
AND
SEASONING
•  CITIZEN
STATUS
•  USE
OF
FUNDS

  6. 6. QuesDon:
How
does
private
money
determine
the
LTV?
Answer:
The
rule
of
thumb
is…
•  Purchases
60‐65%
LTV
with
100%
CLTV
•  Cash
Out
refinances:

50‐55%
with
90%
CLTV
•  Private
money
always
looks
at
the
collateral
but
loca;on
 and
condi;on
are
important
too.

A
property
in
a
nice
 loca;on
with
excellent
curb
appeal
is
going
to
get
a
 higher
LTV.

  7. 7. QuesDon:
How
does
private
money
determine
the
INTEREST
RATE?
Answer:
Collateral,
condi;on,
loca;on,
LTV,
and
FICO
determine
the
interest
rate
along
with
investor
appe;te.


  8. 8. QuesDon:
What
types
of
borrowers
does
Private
Money
make
loans
to?
Answer:
•  Corpora;ons,
LLC’S,
Partnerships,
Investors,
and
Individuals.
•  We
will
also
loan
on
an
owner
occupied
cash
out
refinance
if
the
 cash
out
exceeds
the
payoff
of
the
exis;ng
liens
and
the
cash
out
 is
being
used
for
business
purposes.
•  We
will
NOT
loan
on
an
owner
occupied
purchase
or
rate
and
 term
refinance
unless
purchased
or
vested
in
a
business
en;ty.
 Why??
 •  Because
Private
Money
Lenders
make
loans
for
“Business
 Purposes”
NOT
“Consumer
Purposes”
UNLESS
it
is
a
NOO
 Consumer
Purpose
loan
pulling
cash
out
to
pay
off
personal
debt
 •  An
owner
occupied
purchase
and
rate
and
term
refinance
are
 considered
“Consumer
Purpose
Loans”
UNLESS
in
a
business
 en;ty.

  9. 9. QuesDon:
What
types
of
proper;es
does
Private
Money
like
to
loan
on?
Answer:
 •  SFRs,
Condos,
1‐4
Units,
5+
Units

 •  Older
Retail
Strip
Centers

 •  Assisted
Living
Facili;es

 •  Owner‐Occupied/Operated
Facili;es

 •  Construc;on/Renova;on

 •  Profitable
Restaurants

 •  Day
Care
Center

 •  REO
Poriolio
Acquisi;on

 •  Hotels/Motels

 •  Salons/Spas

 •  Industrial
Facili;es

 •  Self‐Storage
Facili;es

 •  Medical
Offices

 •  Shopping
Centers

 •  Metal
Buildings

 •  Specialty
Retail
Stores

 •  Mixed‐Use
(commercial
with
 •  Vacant
Proper;es

 residen;al)

 •  Warehouse
Condos

 •  Newer
Flagged
Hotels
 •  Warehouses

 •  Office
Buildings

 •  Rehab
or
construc;on
on
projects
that
 •  Office
Condos

 are
50%
or
more
complete

  10. 10. QuesDon:
What
types
of
proper;es
does
Private
Money
NOT
like
to
loan
on?
Answer:
 NO
SINGLE
USE
PROPERTIES
INCLUDING:
 •  Funeral
Parlors

 •  Marinas

 •  Hospitals

 •  Laundromats

 •  Churches
 •  Dealerships
 •  Gas
Sta;ons
 •  Unpermi>ed
Units
 •  Auto
Repair
Shops


  11. 11. CORE
PROGRAM:
 •  Our
loan
amounts
range
from
$100,000
to
$2,000,000
 •  Our
loans
are
10,
20,
30
or
40
year
amor;zed
or
I/O
 (ONLY
Small
Balance
Commercial)
due
in
3
years.
 •  Our
standard
fee
is
2
–
6
points.
 •  Our
prepayment
penalty
ranges
from
0
months
to
1
 year
depending
on
the
program
(80%
of
6
months
 interest).

  12. 12. HIGH
BALANCE
COMMERCIAL
PROGRAM:
 •  These
loan
amounts
range
from
$2,
000,000
to
 $20,000,000.
 •  These
loans
are
20
or
25
year
amor;zed
or
I/O
and
 due
in
5,
7
or
10
years.
 •  Our
standard
fee
is
2‐
5
points.
 •  Our
prepayment
penalty
is
variable
(case
by
case).
 •  Debt
Service
Ra;o
is
1.2
to
1.5


  13. 13. •  We
don’t
require
Income
Doc.
•  We
don’t
require
FICO
SCORES
•  We
don’t
require
Reserves.
•  We
don’t
require
Source
or
Seasoning.
•  We
don’t
require
borrower
to
be
a
US
Ci;zen.
•  We
don’t
require
Appraisal
Reviews.
•  BPO
OK
if
less
than
50%
LTV.

  14. 14. •  Collateral
(Security
–
The
property
securing
the
note.)
•  Skin
(Borrowers
own
Cash
into
the
transac;on.)
•  Story
(The
story
that
gave
rise
to
the
need
for
the
loan.)
•  Exit
Strategy
(A
realis;c
detail
of
how
the
loan
will
be
 paid
off
at
maturity.)
If
one
leg
is
missing
the
stool
becomes
less
stable.

  15. 15. •  Keep
in
mind
a
private
money
loan
is
a
“BRIDGE”
 loan
or
a
“BAND
AID”
loan.


•  Most
borrowers
take
a
private
money
loan
 because
they
need
to
close
FAST...FASTER
than
 ins;tu;onal
lending.
•  This
is
a
short
term
loan…THREE
years…and
in
 most
cases
this
loan
will
pay
off
sooner.


  16. 16. The
goal
for
the
borrower
ader
three
years
is:
 •  They
will
have
their
credit
reestablished.
 •  They
can
meet
Fannie
Mae,
Freddie
Mac
income
 requirements
 •  Their
FICO
scores
will
be
be>er.
 •  Their
divorce
will
be
final.
 •  The
probate
will
be
completed.
 •  The
property
will
be
sold
if
a
flip.
The
BEST
part
is
that
the
broker
may
get
to
refinance
the
borrower
in
3
years
and
get
a
SECOND
loan!!!

  17. 17. Sunwest Capital Lending “YOUR COMPANY FOR LIFE” CALL US (949)542-3158Chris Stamos chris@sunwestcapital.comRon Rauch ron@sunwestcapital.comMary D‘Acierno mary@sunwestcapital.com

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