Are you Interested in Becoming a Private Money Partners?
Pitts Enterprises Inc. Private Money Partners 2012 Opportunities……
DisclaimerThis is not an offer to purchase or 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. Pitts Enterprises Inc. is not a licensed securities broker-dealer and as such, do not hold themselves to be. The following presentation and all material therein should be construed as informational only and not as an advertisement soliciting for any particular purpose or product. 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.
Pitts Enterprises Inc.Pitts Enterprises Inc. has assisted hundreds of investors with realizing their dream of real wealth building through diversifying their portfolio with real estate.Today, we are in a position to offer more opportunities than ever for the right investor.The biggest opportunity is the chance to further diversify your portfolio by providing short-term funds for investment purchases!
What does Pitts Enterprises Inc. do? Pitts Enterprise Inc. locates undervalued properties through bank relationships (REO), distressed sellers, and other sources. We then purchase these properties for our own portfolio and additionally we sell some of these properties to other investors or end users.
What does Pitts Enterprises Inc. do? Pitts Enterprises Inc. borrows funds from private investors to purchase and sometimes renovate the properties. Pitts Enterprises Inc. sells the properties for profit in the wholesale or retail market, depending on the property. Pitts Enterprises Inc. provides the Purchase of the property depending on the credit we provide rehabilitation of the project and either the property management or listing services, depending on the type of investment strategy, after the purchase.
Why the Need for Short-Term Financing? A significant percentage of Pitts Enterprises Inc. properties are sold to investors using conventional mortgages. These properties must be purchased and rehabbed by Pitts Enterprises Inc. before an end investor can purchase using conventional financing. For us to be able to offer a wide variety of inventory to our client base, we need to close and rehab multiple houses per month. Hence, the need for funds…
How is this Different from Hard Money? This is different in several ways: Pitts Enterprises Inc. The lender is not waiting on the buyer to refinance there house, which is much more difficult and time consuming in today’s market that requires perfect credit. My company is selling the Note within six months to a year after purchase. Then the next step is to fix there credit which at that point allows the home owner to receive a lower interest rate. The buyers motivation is a lower interest rate. Pitts Enterprises Inc. The lender is paid a monthly Mortgage Note payment by the new buyers. Pitts Enterprises Inc. The lender is financing the purchase price.
How Does Pitts Enterprises Inc. Buy Property So Far Below Market Value? Pitts Enterprises Inc. creates value by purchasing, in bulk, distressed properties at a significant discount which are vacant and in need of rehab and turning them into attractive functional family homes. After buying and selling over 30 properties in the last five years, we know where to look, what to buy, what not to buy, and how to renovate a property to maximize investor’s dollars.
The Initial Steps You the investor calls Amanda Holbrook at Equity Trust and sets up a self-directed IRA. (or) You the Investor has cash available for immediate use. You the new investor then applies to be a short- term lender with Pitts Enterprises Inc. You the Investor receives updates and announcements of available lending opportunities with Pitts Enterprises Inc.
Example Note Terms ARV (After Repair Value) = $45,000.00 Pitts Enterprises Inc. pays for an independent, licensed appraisal before we commit to buying a property. Note Amount (Our cost basis) = $35,750.00 LTV(Loan to Value) = 30% to 65% Term = Two Year - Maximum 10 Years 1st Position Note Origination Points = 5.0 Interest Rate = 11%
Investor Protections All funds are channeled through and disbursed by closing attorney Rehab Funds are escrowed by closing attorney Tax and Insurance Escrows or Pre-Payment Additional Information Provided on Subject Properties Scope of Work, Itemized Rehab List, etc.
Steps to Fund the Deal (Pitts Enterprises Inc. The Lender Using there Own Cash) Closing attorney prepares note and deed of trust You the investor reviews all documents for accuracy and approves the paperwork You the investor faxes documents back to Pitts Enterprises Inc. who delivers to closing attorney You the Investor sends funds to attorney’s office to close on the property on behalf of Pitts Enterprises Inc. Closing Attorney records deed of trust Pitts Enterprises Inc. begins the rehab Pitts Enterprises Inc. mails You the Investor an monthly payment after the 90th day, etc, etc.
Steps to Fund the Project(Lender/Partner/Investor Using Self- Directed IRA) Closing Attorney prepares the Notes and Deed of trust Attorney pre-fills Equity Trust Company investment forms for New Client. If you are a client with a self – Directed IRA New Client reviews all documents for accuracy and approves the paperwork New Client faxes signed documents to Equity Trust Equity Trust wires funds to closing attorney Attorney records Deed of Trust Attorney sends the Note to Equity Trust Company Pitts Enterprises Inc. begins the rehab Pitts Enterprises Inc. mails interest payments to Equity Trust for deposit into New Clients IRA account.
Example Project In the Chicagoland Cook County Area Purchase Price: $15,500
Initial Deals Are 30k Structured With Seller Financing After Repair Value of House: $55,000 Pitts Enterprises Inc. Purchase Price = $15,500.00 Estimated Renovation Budget = $12,000.00 Client pays for Renovation cost. Closing Costs = $750.00 Pro-Rated Taxes and Insurance = $1,345.00 Total Cost Basis = $17,595.00 Investor Funds= $17,595.00 divided two ways $8,797.00 each. Lender Origination Fee= $1,750.00 paid by the buyer
$8,797.00 Principal Invested 5.0 Points = $1,750.00 Down Payment $6,000.00 Interest on $29,000 @ 11% For 10 years = $47,949.60 $4,796.16 Earned in One Year Purchase Price $35,000.00 11.0% Interest Secured by Deed of Trust Insured by Hazard Policy LTV @ 39% Of property value Buyer provides Money for Renovation
What Happens When Pitts Enterprises Inc. Sells the Property to a buyer? Let’s say a new deal starts On January 1. The New Client and Pitts Enterprises Inc. funds the deal for ten years. On January 30th, Pitts Enterprises Inc. finishes the rehab work and already has a buyer under contract. With the closing for the end buyer around February 30th The new Client starts paying there Mortgage Note starting April 1st. We begin to earn a consistent income on this deal for the next ten years. With a return on our investment if we sell the note within one to two year.
Multiple Exit Strategies We can offer you a note renewal We can refinance your note with another lender We can bring in credit partners to refinance We can sell the property quickly at a discount to another investor
Pitts Enterprises Inc.Contact Vincent Pitts or visitwww.pittsenterprise.wordpress.com for more details to get started! [708-557-9667] firstname.lastname@example.org