Private lender presentation

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Our quest for private capital. Who we are as a business and individuals. Our experience investing in real estate, flipping and buy and hold.

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  • Before photo of house and purchase price
  • Before and After Front of house
  • Private lender presentation

    1. 1. Dick Todhunter - President www.SoundRedevelopment.com Real Estate Consultants Serving King and Pierce County, WA
    2. 2. Disclaimer <ul><li>This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and fully understanding such documents. Sound Redevelopment Group and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This presentation should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws. </li></ul>
    3. 3. Presentation Agenda <ul><li>Sound Redevelopment Group – Who Are We? </li></ul><ul><li>What is Private Mortgage Lending? </li></ul><ul><li>WIIFY - What’s In It For You? </li></ul><ul><li>How do you get started? </li></ul><ul><li>“ Time and Tide waits for no man” </li></ul><ul><li>Call us at 206-257-0366 </li></ul><ul><li>Email us at [email_address] </li></ul><ul><li>www.SoundRedevelopment.com </li></ul>
    4. 4. Company Vision <ul><li>To provide investment services for Real Estate Investors and Money Investors. </li></ul><ul><li>To grow the company by providing affordable housing to tenants and 1 st time homebuyers. </li></ul><ul><li>To expand our operations into rest of the state and branch out to other locations. </li></ul><ul><li>To help families during these difficult times. </li></ul><ul><li>To help preserve neighborhoods through our investment and rehab activities. </li></ul>
    5. 5. Why the Time is Right! <ul><li>&quot;In the middle of difficulty lies opportunity.&quot; Albert Einstein </li></ul><ul><li>It is estimated that more than 60% of homes sold in the next year will be distressed sales, short sales, REO sales. </li></ul><ul><li>Bank lending is really tight. Creating opportunity. </li></ul><ul><li>There are two sides to this coin, sad and opportunistic. </li></ul><ul><li>This atmosphere happens cyclically (1980’s, RTC). </li></ul><ul><li>“ This time is different” (worse, won’t recover), not! </li></ul><ul><li>We have the systems in place to take advantage of our knowledge. </li></ul>
    6. 6. Real estate is a risk based business, our objective is to reduce that risk. How? <ul><li>We buy homes, tire kicking assets, and a 1 st lien position is secured by a note and deed of trust. </li></ul><ul><li>1 st lien normally limited to less than 75% ARV. </li></ul><ul><li>All funds are handled through escrow or as agreed. </li></ul><ul><li>Any rehab funds - distributed out of escrow or as agreed. </li></ul><ul><li>We insure the property for 1 year at escrow. </li></ul><ul><li>You can foreclose on a defaulted note and pick up a remodeled home! </li></ul>
    7. 7. What else is risky? <ul><li>The stock market – ups and downs, up or down when you sell. </li></ul><ul><li>Bonds, T-Bills </li></ul><ul><li>How about the risk of not having a retirement because your rate of return was too low </li></ul><ul><li>Or your principal was at risk, lost because you needed the funds </li></ul>
    8. 8. Who is SRG? <ul><li>Started in 2006 by Dick Todhunter and Ned Turner </li></ul><ul><li>Market for and Identify investment opportunities. </li></ul><ul><li>Buy distressed residential and commercial properties at a deep discount. </li></ul><ul><li>Rehabilitate properties and solve financial problems to create value. </li></ul><ul><li>Sell to 1 st time home buyers and investors. </li></ul>
    9. 9. Sound Redevelopment Group – Who Are We? <ul><li>Dick Todhunter </li></ul><ul><ul><li>Real estate Broker/ Owner – 30 years experience </li></ul></ul><ul><ul><li>Real estate investor, over 100 rehabs </li></ul></ul><ul><ul><ul><li>Authored “The Professional Real Estate Analyst” </li></ul></ul></ul><ul><ul><li>Mortgage Bank President, 120 LO’s, 4,500 mortgages worth a Billion dollars in volume over 4 years. 22 years experience. </li></ul></ul><ul><ul><li>Serial entrepreneur (The E-Myth by Francis Gerber) </li></ul></ul><ul><ul><li>BS – Marine Ecology, MBA – Finance </li></ul></ul><ul><ul><li>Married 33 years, 3 sons, 1 daughter, 2 antique cats </li></ul></ul>
    10. 10. <ul><li>Ned Turner </li></ul><ul><li>  </li></ul><ul><li>Top 15% of Real Estate Sales Agents for Major Real Estate Company  </li></ul><ul><li>20 Years of Multi-Portfolio Property Management experience </li></ul><ul><li>  Project Management of over 100 Rehab projects </li></ul><ul><li>National and local banking experience </li></ul><ul><li>President of North American Default Solutions a short sale negotiation company </li></ul><ul><li>Owner of an Event Management company </li></ul>Sound Redevelopment Group – Who Are We?
    11. 11. How is SRG Different? <ul><ul><li>This is a business with experienced management. </li></ul></ul><ul><ul><li>Dick – CEO- Visionary, Marketing, Technology </li></ul></ul><ul><ul><li>Ned – COO- Acquisitions Sales &, Legal and Investor Relations </li></ul></ul><ul><ul><li>Tyler – Renovation Management , Operations, Financial Management </li></ul></ul><ul><ul><li>Team of professionals (attorneys, mortgage brokers, agents etc.) </li></ul></ul><ul><ul><li>Team of employees and temp staff </li></ul></ul><ul><ul><li>#1 Resources available, Than Merrill of Flip This House fame and his entire organization are a phone call away. </li></ul></ul>
    12. 12. What Does SRG Do? <ul><li>SRG locates a property to buy at a significant discount below market value. </li></ul><ul><li>SRG borrows funds from private investors to purchase and renovate the property. </li></ul><ul><li>SRG sells the property for profit or holds the property for cash flow and potential appreciation. </li></ul><ul><li>Sound Redevelopment Group hereafter referred to as SRG. </li></ul>
    13. 13. Example Project
    14. 14. After Renovation
    15. 15. SRG Product Before After
    16. 16. SRG Product Before After
    17. 17. SRG Product Before After
    18. 18. How is SRG Different? <ul><li>STRATEGY </li></ul><ul><ul><li>Value through “out of the box” creative approach to real estate transactions. </li></ul></ul><ul><ul><li>Long term commitment to providing SOLUTIONS for our clients and finding VALUE for our investors. WE ARE HERE TO STAY. </li></ul></ul><ul><ul><li>Continuous Investment and Commitment to Improving Industry Knowledge & Training. </li></ul></ul><ul><ul><li>Always have an EXIT strategy! </li></ul></ul><ul><ul><li>Always be marketing. </li></ul></ul>
    19. 19. How Can We Buy Houses So Far Below Market Value? <ul><li>We specialize in distressed properties that usually need renovation. </li></ul><ul><li>We know where to look, what to buy, what NOT to buy, and how to renovate. </li></ul><ul><li>We create value by purchasing ugly, vacant homes and turning them into attractive, functional, family homes. </li></ul>
    20. 20. Actual Case Study <ul><li>Joe moves his retirement account to i.e.. Entrust New Directions Roth IRA </li></ul><ul><li>Joe applies to become a Private Lender at www.SoundRedevelopment.com </li></ul><ul><li>Joe receives company updates and announcements of available private notes. </li></ul><ul><li>Joe calls or e-mails SRG with interest in a specific note, or inquires if a note is available with their preferred terms. </li></ul><ul><li>Joe selects a note that meets his criteria and requests to be the lender on the note. </li></ul>
    21. 21. Example Note Terms <ul><li>ARV (After Repaired Value) = $160,000 </li></ul><ul><li>Note Amount = $100,000 </li></ul><ul><li>LTV (Loan-To-Value) = 62.5% +- </li></ul><ul><li>Term = 1 Year </li></ul><ul><li>1 st Position Note (1 st secured by the property) </li></ul><ul><li>Points = 1.5 </li></ul><ul><li>Interest Rate = 12% </li></ul><ul><li>APY (Annualized Percentage Yield) = 13.5% </li></ul>
    22. 22. Investor Options <ul><li>Investors are paid on the frequency of their desire: </li></ul><ul><li>Interest Payments </li></ul><ul><ul><li>Monthly </li></ul></ul><ul><ul><li>Quarterly </li></ul></ul><ul><ul><li>Annual (for terms longer than 1 year) </li></ul></ul><ul><ul><li>Accruing </li></ul></ul><ul><ul><li>Custom </li></ul></ul>
    23. 23. More Investor Options <ul><li>Rehab Escrow Account </li></ul><ul><li>Tax and Insurance Escrows or Pre-Payment </li></ul><ul><li>Longer Term Notes </li></ul><ul><li>Junior Position Notes </li></ul><ul><li>Non-Retirement Account Funds </li></ul><ul><li>Additional Information </li></ul><ul><ul><li>Property Tour </li></ul></ul><ul><ul><li>Scope of Work, etc. </li></ul></ul>
    24. 24. Steps To Fund The Deal <ul><li>SRG prepares Note and Deed of Trust </li></ul><ul><li>SRG pre-fills Entrust Direction of Investment forms for Joe </li></ul><ul><li>Joe reviews all documents for accuracy and approves </li></ul><ul><li>Joe faxes signed documents to Entrust </li></ul><ul><li>Entrust wires funds to title company </li></ul><ul><li>Title Company funds deal </li></ul>
    25. 25. Steps To Fund The Deal <ul><li>Title company records Deed of Trust </li></ul><ul><li>Title company sends Note to Entrust </li></ul><ul><li>SRG begins renovation </li></ul><ul><li>SRG mails interest payments to Entrust for deposit into Joe’s IRA account </li></ul>
    26. 26. Initial Deal Structure <ul><li>SRG Purchase Price = $71,000 </li></ul><ul><li>Estimated Renovation Budget = $18,000 </li></ul><ul><li>Closing Costs = $500 </li></ul><ul><li>Pro-Rated Taxes and Insurance = $1,000 </li></ul><ul><li>Total Cost Basis = $90,500 </li></ul><ul><li>(not a deal we are funding) </li></ul>
    27. 27. Initial Deal Structure <ul><li>Investor Funds: $100,000 </li></ul><ul><ul><li>Lender Fees: $1,500 </li></ul></ul><ul><ul><li>SRG Cost Basis: $90,500 </li></ul></ul><ul><ul><li>Remaining Funds = $8,000 </li></ul></ul>
    28. 28. Joe’s Earnings After One Year <ul><li>$100,000 Principal Invested </li></ul><ul><ul><li>+ 1.5 Points = $1,500 </li></ul></ul><ul><ul><li>+ Interest @ 12% = $12,000 </li></ul></ul><ul><ul><li>= $13,500 Earned in 1 Year </li></ul></ul><ul><ul><li>13.5% APY </li></ul></ul><ul><ul><li>Secured by Deed of Trust on real estate </li></ul></ul><ul><ul><li>Insured by Hazard Insurance Policy </li></ul></ul>
    29. 29. Now What? <ul><li>SRG sends a pay-off check to Entrust for credit to Joe’s IRA </li></ul><ul><li>Or… </li></ul><ul><li>2. SRG offers Joe an extension for a longer term </li></ul>
    30. 30. What happens if my Note matures and SRG is not ready to fund my payoff? <ul><li>Multiple Exit Strategies </li></ul><ul><ul><li>We can offer you a Note renewal. </li></ul></ul><ul><ul><li>We can re-finance your Note with another lender. </li></ul></ul><ul><ul><li>We can bring in a credit partner to re-finance . </li></ul></ul><ul><ul><li>We can sell the property quickly at a discount to another investor. </li></ul></ul>
    31. 31. Where do you go from here? <ul><li>Visit our web site: www.SoundRedevelopment.com </li></ul><ul><li>Check the site out and see if you should call and make arrangements to get your questions answered and concerns alleviated. </li></ul><ul><li>Call us at 206-257-0366 </li></ul><ul><li>Email us at [email_address] </li></ul>
    32. 32. How To Contact Sound Redevelopment Group www.SoundRedevelopment.com Call: 206-898-3776 This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and fully understanding such documents Sound Redevelopment Group and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This e-mail should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws. Real Estate Consultants

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