Investment Vehicle Recovery Opportunity 1


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Investment Vehicle Recovery Opportunity 1

  1. 1. Vehicle Recovery Opportunity 1 1027 Auto Title LLC Consumer Debt Specialist Copyright Sol Wahba January 2010
  2. 2. Investment Grade Assets at 85% Discount <ul><li>Limited opportunity to invest in distressed assets at a very low cost basis </li></ul><ul><li>Secure investment collateralize by perfect title on over 1000 late model vehicles </li></ul><ul><li>25% ROI In 6 months </li></ul>Stapleton Auto Titles Bank Consumer Investor
  3. 3. De-leveraging of Major Bank Assets <ul><li>The purpose of this presentation is the purchase of a portfolio of 1400 various auto loans. </li></ul><ul><li>The current portfolio consists of various auto makes and models located in various cities . </li></ul><ul><li>The total original loan balance for the portfolio IS $24 Million and remaining principal unpaid balance of $18Million. </li></ul>
  4. 4. Inventory Shortage/Used Car Demand Strong <ul><li>The Certified Pre Owned market ( CPO ) is gaining strength. some automakers continue to forge ahead and saw strong results.   </li></ul><ul><li>These unusual economic times have made consumers more value conscious and our Mercedes-Benz Dealers have ‘stepped up' their efforts to promote the affordability Mercedes' CPO vehicles offer,&quot; stated Mark Webster, national pre-owned operations manager for Mercedes-Benz USA </li></ul>Autodata Corp 120,927 units sold 5-percent increase Used Cars Demand Mercedes-Benz 58,065 units Increase 24% Nissan 59,826 11.2 % Up
  5. 5. Distressed Assets Strategic Investment for Conservative investors. High Yield Analysis <ul><li>Short term full capital recovery </li></ul><ul><li>Recovery efforts of assets maximized in 180 days </li></ul><ul><li>Profits distributed in 120 days with optional reinvestment allowed. </li></ul>
  6. 6. 20 yr proven process of Special Servicing, Recovering, delinquent loans & disposing of assets through Wholesale Auctions. Recovery Skip trace Contact Pick Up Deliver Auction Detailing Recover Wholesale Prep Clean up Identify Titles Locate Dispatch Organize
  7. 7. Vehicles By State AL 13           NC 18 AR 2             NE 2  AZ 38          NH 1 CA 273         NJ 18 CO 10          NM 11 CT 4            NV 32 DC 4            NY 35 DE 2            OH 20 FL 109          OK 10  GA 34          OR 4 HI 2             PA 19 IA 2              PR 1 ID 3             SC 6 IL 65            TN 16 IN 7             TX 112 KS 2             UT 7 KY 8             VA 18 MA 3            VI 1 MD 30           WA 9 ME 1             WV 6 MI 24        MN 4 MO 12   ------------- 1027 UNITS
  8. 8. Low fees to maximize Investors Objectives <ul><li>POTENTIAL INVESTOR RETURN: </li></ul><ul><li>All equity will receive a 50% preferred return . Until all capital is returned </li></ul><ul><li>We expect to achieve a 25% return on investment during the first six months, once the recoveries have been abated and the reposed vehicles are repaired and re-sold, and 60% after 12 months. </li></ul><ul><li>All proceeds above the preferred return will be structured on an 80%/20% basis between the Investor and the Managing Partner until the Investor’s initial investment has been returned and they have received their preferred return. Once that occurs, all proceeds will be split on a 50%/50% basis with the operating partner. </li></ul><ul><li>The 50% return is not set off against the capital accounts but instead based on the investor’s capital contribution.  Any distributions over the 50% (only) will go towards capital account reductions.   </li></ul><ul><li>We anticipate returning the investors equity within two years from a refinancing or sooner if individual assets are resold. </li></ul>
  9. 10. Individual Modular Investment Program <ul><li>Investments in distressed assets usually require large capital outlays Our investment minimum is only 50k. And is collateralized </li></ul><ul><li>Our team has identified this scarce loan portfolio collateralized with late model luxury vehicles. A full list of assets is available for your review. </li></ul><ul><li>We are looking to joint venture with qualified investors to share in our find. These types of are limited the nature of the lenders facilities. </li></ul>
  10. 11. Asset Recovery Credentials <ul><li>MANAGEMENT TEAM: </li></ul><ul><li>The management team brings together a wealth of experience in all aspects of distressed debt servicing and asset recovery management, asset management, investment banking, and consulting as well as development and disposing of hard assets. </li></ul><ul><li>The Wahba and Adao family has been involved in distressed and alternative financing for twenty years. </li></ul><ul><li>As a principal, Mr. Wahba and Adao has been involved in the ownership, management and financing of distressed assets and real estate throughout the United States and South America </li></ul><ul><li>Mr. Wahba was a principal of Nuvo Acquisitions ltd and ATN capital which held a controlling interest in partnerships owning in excess of 10 billion in consumer debt as a servicing agent. </li></ul><ul><li>Mr. Adao was directly responsible for acquisitions, dispositions, financing and restructuring of real estate loan assets. </li></ul><ul><li>Kingdom Capital has sold and disposed of several loan portfolios to publicly a listed company. </li></ul><ul><li>In addition to Wahba’s position in Nuvo Acquisitions, he and his family were the founders and controlling shareholders in a Media company where he served as a Director, Chairman of the Audit Committee and member of the Credit Committee. </li></ul>
  11. 12. Lee Kile <ul><li>Debt Restructure Specialist, LLC – President, Co-Owner/Co- Founder (2008-Present) </li></ul><ul><li>First Place Auto Center – Sole Owner/Operator 12 Years (1997-Present) </li></ul><ul><li>David McDavid Pontiac/Saturn – General Manager Saturn (1990-1997) </li></ul><ul><li>Sonlight Motors (1982-1990) </li></ul><ul><li>Overview – Short and to the Point </li></ul><ul><li>I am owner of First Place Auto Center, Inc. This is a dealership that I built from the ground up in 1997. I have been in the car business for approximately 27 years. I graduated from Evangel University in Springfield Mo. 1990. I was dealing with cars on an individual basis to pay my way through college. I have handled successfully ALL phases of the car business my entire life. For example: Managing large numbers of inventory and sells force. Buying, Cleaning, Fixing, Selling, Lending, Repossessing, Remarketing and Training. I am professionally versed in all types of auto paper sold to banks and purchased from banks. I am very experienced in auto auctions and all phases of processing cars through a given auto auction. I have built a good relationship with a network of dealers and other auto professionals in the industry. I have conducted business all over the U.S.A. in the sale and marketing of cars. I have built my auto dealership with a simple, honest and straightforward approach. This life policy has served me well. </li></ul><ul><li>I am currently also President and co owner/co founder of Debt Restructure Specialist, LLC. We collect and service all types of paper both commercial and private. We are not your typical collection company. We operate with a strong commitment to our customer. To maximize every account for every dollar. This entity allows me to utilize my long term learned skills in making auto loans, credit review including the ability to recognize fraud. This comes from dealing with all types of customers from all walks of life and making sound business decisions regarding these customers. </li></ul><ul><li>Overall, I bring 27 years of being solely in the car business and being successful in handling all phases of this business. I keep up with changes in economic conditions that affect this industry. I have years of experience in dealing with banks that lend money on automobiles and the needs of these banks, along with lending trends of these banks. I am experienced in managing a balance of success between customers and banking entities. The balance of auto sales, lending and collections coupled with my years of experience is the formula for success in this industry as a whole. </li></ul><ul><li>the average score is 620+.  Some of the units were sold new and with $0 down, thus showing these customers as prime.  These came from (1) bank (major).  Please understand the business model of the seller.  They have a small repo company and just do the basic drive by and pop.  Years of our experience tells us that with out vast network of skip locate, that this will be a quick resolve to have units recovered.  The turn around is immediate.  Unit is recovered, taken to auction, sold, and then we trade title for check.  Week by week basis.  We already have the network of recovery agents in place, registered accordingly with the auctions nationwide.  Basically everything is in place to make this a rapid possitive venture.  This is a very simply task with great forcasted results.  Outside window is 6 months.  </li></ul>
  12. 13. Stephen Perry <ul><li>: V. President and Co Founder/Co Owner of D.R.S. Debt Restructure Specialist, LLC. </li></ul><ul><li>Background most recent-decending </li></ul><ul><li>Corporate- CitiGroup/CitiFinancial - Approximately 11 years </li></ul><ul><li>Corporate Operations Collections-Senior Management – Loss Mitigation and Legal </li></ul><ul><li>Operated, serviced, maintained, and supervised collection team(s) over auto portfolios. Individual responsibility was the collection of portfolio totals of approximately $200MM per month. Overview responsibility of portfolio size was up to $4B in receivables. Responsibility was to maintain control and collections. Corporate goals were to obtain a minimum delinquency of approximately 2% on a recurring monthly basis. I was also responsible for staffing, training, monitoring, and success of staff totaling up to 180 collectors and administrative staff. </li></ul><ul><li>Prior list of Employers in the same field, and administering the same job responsibilities. </li></ul><ul><li>The Associates – Dallas Tx – Auto collections from 31dpd to 120dpd charge off. Made all decisions regarding status of account as to doing workouts and/or repossessions. Handled all phases of collections, repossessions, insurance claims, losses ranging from small balance charge offs, known losses such as theft with no insurance (including customer settlement agreements and collections) dealing with legal entities such as impounds, seizures, and vehicles removed from the country. Oversaw teams of collectors responsible for these responsibilities on an individual basis. Average outstanding balance per collector for monies collections and loan resolutions was approximately $25MM-$35MM (per collector in a team size of 8-12) </li></ul><ul><li>Arcadia Financial – Dallas Tx - Was in charge of a auto collection team of 10 responsible for a outstanding portfolio size of $180MM / on a recurring monthly basis. Was responsible for training, monitoring, and support of team to hit goal of delinquency down to a margin of 3% overall on deep sub-prime auto loans. Responsible for asset resolve (locate, secure and dispose of said vehicles.) Oversaw all phases of collections and debt resolution of auto loans in this capacity approximately 4 years. </li></ul><ul><li>Search Capital – Dallas Auto Credit – Was responsible for collections of monies on auto loans that were structured as deep sub prime loans. Average credit scores of customers on these loans were 460-520 with prior auto repossessions. Also responsible for reducing losses due to repossessions, insurance claims, and other phases of losses. Was directly responsible to reduce losses from approximately $2MM per month on a $40MM portfolio with success rate of being consistent with loss reduction by 80% and maintaining the reduction for 6 consecutive months. At which time I was put in charge of a team of 8 heading up loss mitigation, legal dedication of service (handling court cases in small claims courts) and total collections of deficiency balances. </li></ul><ul><li>AmeriCredit – Arlington Tx – Began with AmeriCredit from it inception in 1990. AmeriCredit began as the corporate entity of a tote the note chain of dealerships called UrCarCo. They were ultimately connected to a California entity called Cars Yes. Was responsible for verification of credit applications for approvals for auto loans. These were the lowest form of car loans. Then collection follow up on these loans. The company goal was to get as low as 20% delinquent by the end of a given month. When I started I hit a goal (told impossible to hit) of 9.8% delinquent of a outstanding portfolio balance sheet. I was never higher than 12% with 20 other counterparts of like job duties as mine (other collectors) averaging 18%-24%. I maintained all standards for a period of 5 years. </li></ul><ul><li>ITT Financial – Irving Tx—Consumer lending—I was hired as a collector of unsecured cash loans and commercial loans and within 1 month was promoted to assistant branch manager. Maintained low end collections to a margin of 2% delinquency requirements. Was here for approximately 2 years. </li></ul><ul><li>These employment companies date back to 1989. My first collection job was in 1974 for US Life Credit, a consumer finance company. All of the above companies were positions of collections and/or lending to consumers. I am very well educated in the collection laws (FDCPA) that must be followed in this industry. I have always maintained success and I have never been named in any negative legal action against any employer. My 30+ years in the industry has been in collections of any and all types of securities. Secured and Unsecured, Mortgages, Autos, Collection agency items, and Signature loans. My time has been well marked with success and I have handled all phases of collections, management, legal process, and monitoring of work done. I have managed as many as 18 teams of 12 doing auto collections and am credited for hitting corporate goals of delinquency set for 40 consecutive months while with CitiGroup. I have been a person of reputation in this industry and my last 4 positions were one where I was recruited while not in search for a job. Quite simply, if a person can back up what they say they can do, it is not bragging, just fact. I only state fact!! I get the job done when it comes to the auto collections world. </li></ul><ul><li>Debt Restructure Specialist, LLC offers a totally new, comprehensive format of collections. We are not a ‘collection agency’ of expected style. We use a formula that is a product of my years of experience in dealing with all consumers of all levels, and of all types of loans. My experience in collections has taught me that there is always a way to retrieve the repayment of a loan. I have and currently use as my method of collections, a positive, consumer enhancing, helpful approach to the consumer. Again, my years of experience has taught me respect, and a willingness to listen to a consumer, usually yields results. I have had great success in this career, and now operate the collections side of D.R.S. I am very proud of my past career in this business and will be successful with the collection endeavors of D.R.S. </li></ul>
  13. 14. Due Diligence Details <ul><li>After a due diligence review of inventory, it is determined that the vehicles are mostly mid and up scale units that are most desired. The upscale inventory includes H2 Hummers, Corvettes, Mercedes, BMW, Lexus along with mid range daily driver vehicles such as Honda, Toyota, Ford, Chevrolet, and Dodge. The average year is 2005-2006. Approximately 1/4 to 1/3 of the inventory appears to be full size trucks and SUV vehicles. These vehicles are not the low end vehicles at all. The loans were originated by a National Bank via direct lending. Some of the units were purchased as new. Some of the customers are home owners. The majority of loans was charged off by the bank in 2008 and was (in review of interest rates) made to a non prime and prime credit customer. </li></ul><ul><li>Vehicles are geographically nationwide, however approximately half of the inventory exist in (3) states-California, Texas, and Florida. Expected locate and retrieval of vehicles is immediate. This has been determined due to the nature of this business is best handled by experts in this field. D.R.S staff is made up of specific long term talent in this exact field of auto loans, locate and recovery. The core team of auto specialist has over 100 years collectively in this exact field of auto loans. The hands on experience of the V.P lead this type of collections to a consistent success. </li></ul>