Sperry & Sons - Private Lending Presentation
Upcoming SlideShare
Loading in...5
×

Like this? Share it with your network

Share
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Be the first to comment
    Be the first to like this
No Downloads

Views

Total Views
968
On Slideshare
964
From Embeds
4
Number of Embeds
2

Actions

Shares
Downloads
14
Comments
0
Likes
0

Embeds 4

http://www.facebook.com 3
http://sscapital.dev 1

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
    No notes for slide
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.
  • © Copyright 2011 Wealth Classes, LLC. All rights reserved. DISCLAIMER: This document and all information included herein is provided for educational purposes only. It should be used in conjunction with competent professional advice and counsel.

Transcript

  • 1. Sperry & SonS Capital inveStmentS Generating Wealth With Private Lending
  • 2. Agenda Today, We Will Discuss: Earning High Yields Secured by Real Estate While YOU Stay In Control of YOUR Money & Receive MONTHLY Payments
  • 3. What Private Lending Is NOT!
  • 4. What is Private Lending? “Private Lending" refers to a private individual making a loan to another individual with real estate as collateral. You Are The Bank Your Name Is On The Note and Deed of Trust
  • 5. Why Haven’t I Heard of This?
  • 6. Benefits of Private Lending• Secured by tangible property• Safety - low risk – As long as there is value in the property, your investment is secure• Great returns• People are familiar with real estate investing because real estate ownership is so common.• Receive monthly payments
  • 7. Basics• Let’s assume we have a $500k house in the San Francisco Bay Area… VALUE: $500k PROTECTIVE EQUITY: $200K (40%) This is our “protection” - our cushion… LOAN: $300K (60%) We lend NO MORE than 60% of value…
  • 8. Why Would Someone PayThat Kind Of Interest…? IMAGINE THIS SCENARIO: You get a chance to buy a property worth $500,000, in today’s market, for $250,000. You have 5 days to close. The bank will only accept cash. Do you care if you pay 12% for 6 months if you can CLOSE on the deal?
  • 9. Someone WILL Pay Because…• Immediacy: Access to capital much faster than conventional lender.• Asset Based Underwriting: Borrower qualifications can be subordinate to the value of the property.• Timeliness: Conventional lenders are not fond of short term loans• Improvement Costs: “Rehab Loans” can include the cost to improve the property, increasing equity• Number of Loans: Traditional lenders limit number of loans
  • 10. How Does It Work? 5 STEP SYSTEM Remember: YOU ARE THE BANKBorrower Investor Escrow Our Broker OurRequests Introduced Opened & Services BrokerLoan and To Project & Investor Loan. You ConfirmsSubmits Makes Places Receive Viability Docs Commitment Funds Monthly $$$
  • 11. What Does It Cost Me?
  • 12. Typical Investment • 60% LTV • 6 months to 36 months • 1st Deed of Trust • 7-10% Interest Rate • 1% Servicing Fee • Non-Owner Occupied, 1-4 unit Residential properties (mentioned before) • Properties within 100-mile radius of office • Rehab Loans for Fix & Flip deals
  • 13. How Am I Protected?
  • 14. Every Investment Has Risk! • Almost all loans will have at least one late payment – The investor actually gets paid more for that because the borrower pays penalties. • A portion will turn in “default” • A smaller portion will go into “foreclosure” • Very few make it all the way to auction. Why? – Protective Equity! • The MOST important number to look out for in private lending is VALUE of property
  • 15. Private Lending vs. Stocks Private Lending Stocks • Great cash flow generator • Not good for cash flow – and quickly • Based on demand and • Use OPE (other people’s supply – beyond your experience) control • Use OPT (other people’s • S&P 500 Lower returns time) • No collateral • Passive income • Relatively secure • Higher returns than stock market
  • 16. In Summary Private Lending is still one of the relatively safest investments you can make, offering you a high return with consistent, monthly cash flow.
  • 17. Conclusion Do you know someone who would like to take advantage of one of the greatest opportunities in our lifetime with low risk and high returns? Contact: ---