Private Mortgage Investments: Secured By Real Estate


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Vincent Pitts of Pitts Enterprise Inc.

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Private Mortgage Investments: Secured By Real Estate

  1. 1. Private Mortgage Investments High Yield Investments Secured by Real Estate9/5/2012
  2. 2. Private Mortgage Investments Vincent Pitts President Pitts Enterprises Inc.9/5/2012
  3. 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. 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. 5. Agenda  Private Investor Program  1st Mortgage Program  2nd Mortgage Program  Company Overview  History  Dream team  Questions9/5/2012
  6. 6. “More millionaires have created their wealth through real estate than any other endeavor” Andrew Carnegie9/5/2012
  7. 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. 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. 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. 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. 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. 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. 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. 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. 15. Questions ???9/5/2012
  16. 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. 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. 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. 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. 20. People Who Sell us Houses  Foreclosures (40%)  Banks  HUD  VA  Freddie  Fannie  Private Individuals (35%) – Increasing Quickly  Realtors (25%)9/5/2012
  21. 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. 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. 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. 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. 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. 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. 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. 28. How to find us Mailing Address: 18221 Torrence Ave Suite 2-C Lansing Illinois 60438 Web Site: E-Mail: Cell Phone: 1-708-557-96679/5/2012
  29. 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