Private mortgage investments (2) secured by real estate
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  • 1. Private Mortgage Investments High Yield Investments Secured by Real Estate9/5/2012
  • 2. Private Mortgage Investments Vincent Pitts President Pitts Enterprises Inc.9/5/2012
  • 3. Disclaimer Please carefully consider Pitts Enterprises Inc. investment objectives, risks, and associated costs or expenses before investing. Real estate investments are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and ask for more information before you consider any investment.9/5/2012
  • 4. WELCOME  We are glad you could attend this presentation  I really want you to understand what we have to offer.  I encourage questions  I’ll stick around after the presentation to answer individual questions or we can schedule a one-on- one meeting at a later date.9/5/2012
  • 5. Agenda  Private Investor Program  1st Mortgage Program  2nd Mortgage Program  Company Overview  History  Dream team  Questions9/5/2012
  • 6. “More millionaires have created their wealth through real estate than any other endeavor” Andrew Carnegie9/5/2012
  • 7. How does your bank make money today? They take in money on CD’s and other securities offering relatively low returns Current CD rates are about 4.3% for 1 year and about 5.0% for 5 year They then loan the money out at a higher rate of interest to other people to buy houses in the form of mortgages Typical mortgage rates are 6.0% to 9.0% depending on the borrowers credit history9/5/2012
  • 8. Private Investor Program Overview  We buy & sell Single Family Residential Properties And Multi Unit Buildings.  To typically buy houses, we prefer to borrow money from private individuals versus banks  We pay private investors 9% for 1st mortgage money or 12% for 2nd mortgage money  We typically use your money for 5 years but we can offer shorter terms in some cases  It is really a very simple plan9/5/2012
  • 9. Private Investor Program How it works We locate a property we want to buy We negotiate a price that is typically 30% to 48% below market At closing we borrow from you the private investor to purchase the property We have a formal closing and you get a mortgage and insurance on the home as security We make payments to you on the scheduled dates9/5/2012
  • 10. Private Investor Program Guidelines - 1st Mortgage Program1st Mortgage Program 1. $25,000 minimum 2. Up to 75% LTV 3. 9% Interest 4. Numerous payment options (monthly, quarterly, etc.) 5. One Point (1%) upfront fee to you the investor 6. 5 years (we allow early withdrawal without any penalties)9/5/2012
  • 11. Private Investor Program Payments Options You get 9% simple interest on your invested capital (12% if you choose the 2nd Mortgage Program) We can pay you any of the following ways:  Monthly (9.0% APR)  Quarterly (9.1% APR)  Semi-annually (9.2% APR)  Annual (9.4% APR)  No Payment Accrual Program (11.3% APR)9/5/2012
  • 12. $100,000 Investment Example One Year Yield 12 Month Return 3.7% $3,700 9.0% $9,000 This is a 240% increase in return to you the Private Investor9/5/2012
  • 13. $100,000 Investment Example Five Year Yield 60 Month Return 3.7% (monthly) $18,500 9.0% (accruals for 5 years) $56,568 This is a 310% increase in return to you the Private Investor9/5/2012
  • 14. Our Target Property Average Purchase Price $15,000 - $50,000 Chicgoland Cook County Repair Cost $8,000 – $25,000 Typically 3 to 5 bedrooms and 1.5 baths Time to renovate less that 90 days House will sell between $30,000.00 and $150,000.00 Typical Loan is $40,000 or $750 per month Our profit is the spread between the rent and your interest Rent payment pays the 9% interest. 9/5/2012
  • 15. Questions ???9/5/2012
  • 16. What if the Tenant doesn’t Pay? We pay you out of our pocket. I will never default on a loan. We will collect from our tenants though careful negotiations or the courts, if needed. For our tenant/buyers we require a 3% to 10% non- refundable deposit upfront which dramatically reduces non-payment issues. For monthly rentals we require at least two months security to protect both you and us.9/5/2012
  • 17. Three Documents Securing Your Investment Promissory Note signed at time of investment by Pitts Enterprises Inc. Recorded first or second mortgage Certificate of insurance naming you as additional insured9/5/2012
  • 18. Your BIGGEST Concern Protection of Principle 1st Mortgage Program – we never borrow more 75% Loan-to-Value We typically buy 30% to 48% below market We then build in equity by rehabbing the property ($25,000 to $35,000) We find quality buyers who give us a $5,000.00 up front deposits We guarantee your payments9/5/2012
  • 19. Got IRA Money???  We can do IRA & Roth investments  Our Third Party Administrator is Equity Trust Company  Located in Elyria, Ohio  Allow self directed investments in real estate from both an IRA or ROTH account9/5/2012
  • 20. People Who Sell us Houses  Foreclosures (40%)  Banks  HUD  VA  Freddie  Fannie  Private Individuals (35%) – Increasing Quickly  Realtors (25%)9/5/2012
  • 21. People Who Rent then Buy our Houses We have Tenant/Buyers Many will become first-time home buyers They work with our mortgage brokers to eventually purchase our homes in 12 o 24 months Our goal is to get people off of the rent rolls and into a home of their own9/5/2012
  • 22. SEC Registration Issues  These secured mortgage notes are exempt transactions pursuant to Section 203 (d) of the Pennsylvania code  No registration is require as long as we stay below 25 investors and only deal with Pennsylvania residents9/5/2012
  • 23. Pitts Enterprises Inc.  We are a C-Corporation  We or many members:  We hold properties both short and long term  10 years of experience  Manage Rentals  Currently own Six properties with about $100K in asset value9/5/2012
  • 24. Pitts Enterprises Inc. Who Is Vincent Pitts?  58 Years Old.  One Adult Son.  30 Years as Management Consultant Pitts Enterprises Inc .  25 Years Real Estate Investor.  20 Mortgage Consultant Blake Consultants.  10 Years Project Manager .  20 Years general Contractor.9/5/2012
  • 25. Company Story We started in 1985 with the purchase of a mixed use building in Chicago Il,. Since that first purchase, we have become a serious real estate investment firm located in the Chicagoland/Cook County region We have grown to hold over 6 properties worth over $100 ,000.00 thousand dollars. Our goal is to grow this company to buy and sell 100 properties by providing affordable housing to buyers and provide 1st time homeowners a mortgage they can afford.9/5/2012
  • 26. Company Story, continued The company is a private for-profit Real Estate Investing Company We acquire, rehab, and lease or sell residential and, at times, commercial real estate9/5/2012
  • 27. Competitive Advantage Our competitive advantage is speed to purchase a property and knowledge of creative real estate techniques That speed comes from knowing we have private funds and the ability to pay cash and close quickly We are very focused in a small geographic area and know the values in our market much better than the sellers and, in most, cases than our competition 9/5/2012
  • 28. How to find us Mailing Address: 18221 Torrence Ave Suite 2-C Lansing Illinois 60438 Web Site: www.blakepittshousingsolution.com www.pittsenterprise.wordpress.com E-Mail: e.pitts@comcast.net Cell Phone: 1-708-557-96679/5/2012
  • 29. The Next Step ?  By now you know how this program works and how you can earn 9% or 12% starting today  Sign up today for a private meeting  We just want a chance to answer any questions you might have9/5/2012