The words in Italics are words that I suggest you use as part of your script. Words in regular type are the explanation of the slide. Slide 1 After welcoming my guests, I refer to the first slide and say that these are the three items I am going to cover in this presentation. Number 1 - I’m going to cover how your dollars are secured by a mortgage on a home here in this area. Number 2 - It’s hassle-free – I Take Care of Everything Number 3 – And obviously I pay 8% interest. What I want you to understand is how I am able to pay such a superior interest rate.
Slide 2 I just introduce myself. This slide is very brief.
Slide 3 I read this slide to them. The star ( ) in the bottom right-hand corner is a trigger mechanism for me. Once I get through with this slide and before I move on to the next slide, I stop and try to gain rapport with the audience by asking someone in the audience: Why did you show up today? What are you interested in? Many times in presentations I’ll work through everybody in the audience. I want them to open up and be comfortable asking questions during the presentation.
Slide 4 I point out that it’s a very brief agenda. In the first part of the presentation I’m going to take head-on my private lending program that you came to see today. The second half of the presentation is the company overview. Its purpose is to just get to know me and my company a little bit better.
Slide 5 Well, how does your bank make money today? Well basically, they take money in and pay you a low CD rate. Then they loan the money out at a higher interest rate to people who buy houses, like myself. What I’m doing with my program is cutting out the banks as the middleman. So your CD investment dollars would come to me and then I use the money to buy houses. Let’s talk a bit about security, a bank CD is FDIC secured. Obviously we are not so what we do is give you the exact same documents when you loan money on a property. We’ll cover this in detail in a minute.
Slide 6 This is just an overview of what we do. We buy and sell houses and rather than borrowing money from a bank, we prefer to borrow from private individuals. Therefore, we can pay them 8% on their money.
Slide 7 Slide number 7 is how the program works. We go out and we locate a property and then we borrow the money from you to purchase the property. We go out to a formal closing, and you get a mortgage on the house. The point I’m trying to make with this slide is that by me buying houses quickly and with cash, many times I can often get a discount on the house.
Slide 8 is a powerful slide. This pictorial seems to really make an impact with the audience. It hits home with them. I start in the top left-hand corner with the private lender and I say: This is you. And these are the documents that secure your loan: a first or second mortgage on the house depending on how much they have invested, a promissory note from me, hazard insurance on the house UCC-1 recorded with the State Then I move over to the picture of the house. This is a house that I have purchased. You might want to insert one of your houses here for your area so you can say: Here’s the house at 123 Main Street that I purchased. And then I go down to where we move a tenant/buyer in the house. I explain to them the term tenant/buyer means that they are tenants as long as they are renting, but the goal is to eventually make them a buyer. I receive rent payments and then those rent payments are used to pay the 8% to the Private Lender. I make sure to drive the point home that this is where the money comes from to pay the Private Lender -- from the rent the tenants give me.
Slide 9 If someone needs income on a monthly basis, we will make monthly payments.
Slide 10 This slide addresses early withdrawal. We make two key points with this slide. 1. Banks will have a 6-month penalty for withdrawing CD money early. We have no withdrawal penalty. 2. I also want to point out that they can pay the 6-month penalty, and they would still make more money by moving their money immediately to me – even with the penalty. A lot of people don’t want to move their money because of that penalty. But in reality, if they would move it, they would end up making more money over time.
Slide 11 I use this sample because I target $25K houses in my area. You might want to change this for your area, but $25K works well in mine. So for a $100K loan from someone, I would pay them $2,000 per quarter or $8,000 in a year. In this example, a bank CD is only going to pay them $2000 for a whole year. That’s a difference of $4,444 as you can see in my take-away box. You’ll notice the star ( ) at the bottom right-hand side of this slide. This is a trigger for me to stop and talk to the guests again. I pick someone out and I say, Hey Julie, could you use another $4,444 a year just by moving your investment money to me? They get a kick out of that.
Slide 12 I just read this slide to them when I get to the 2 nd bullet point and read “What Not to Buy”. I add “possibly may be more important what not to buy”.
Slide 13 This slide is to remind them about the documents that make their loan secured and the fact that these are at no cost to them. I incur all costs to the company – none to them.
Slides 14 I address their concern about protection of principle. I show them on this slide and the following slide that I don’t over leverage the house. This is really a fourth protection for them. There are ads on TV where companies loan 125% of the value of the house. I show them I don’t put in more than 70.00% loan-to-value on the home. One of the things that you need to watch is that a lot of people don’t understand loan-to-value ratios and what we are talking about here. People in the mortgage business will, but a typical homeowner doesn’t grasp this. I get a lot of questions on slide 17. I created slide 18 to further illustrate this point.
Slide 15 This is a 70.00% loan-to-value example I share with them that the difference between an 70.00% loan and a 100% sales price is my profit. I need that money when I sell the house to drive the business and that’s how I get paid.
Slide 16 This slide is meant to get the audience thinking of other means of investment dollars. This is used as segway to next slide.
Slide 17 The purpose of this slide is to address people in the audience who have IRAs, Roth IRAs, and 401Ks. I just point out the fact that they can lend with that money. We want them to realize they can take control of their retirement funds and make them work for them at a superior interest rate. Explain most IRA’s have low rates and someone else is using the money.
Slide 18 This slide gives a top level overview of the mechanics of process of a self-directed IRA. Here I emphasize that we never handle the money. Equity Trust takes care of the transactions as money is sent to and from the title agency/attorney by Equity Trust as custodian of account for IRA owner. We help process Equity Trust forms for lender to keep process painless.
Slide 19 Again, to get audience to think of funds they have that are making very low returns that they could take control of and make it work to their benefit. I point out that making money off of the interest rate spread is what the banks and insurance companies are currently doing with your money.
Slide 20 I buy houses from different sources. I buy houses directly from banks. If they’ve got a house they’ve had to foreclose upon and take back, I can buy those from banks and I have. I buy them from private individuals. And I also buy houses from realtors.
Slide 21 I talk about what I actually do is help people achieve the “American Dream” and I’ve had people sit in closings with tears of joy because I helped them become homeowners.
Slide 22 I’ve had this question asked of me: “What happens if you die?” I explain to them that my company is geared to buy and sell houses. If something happened, the company would sell the house and they would be paid as agreed.
Slide 23 This is a repeat of the agenda slide. You can see from the arrow that I am now moving from the first part of the agenda to the company overview.
Slide 24 I read this to them since it is small print.
Slide 25 I continue to read this to them.
Slide 26 I talk about the name of the company – Martin Investment Group LLC. – and what it means to me.
Slide 27 I talk about my competitive advantage. It is speed to purchase a property and knowledge of creative real estate techniques. The speed comes from having private lenders and the knowledge comes from my years in business and my dedication to continuing education to learn creative real estate techniques. In the next slide, I elaborate on this slide.
Slide 28 I talk about who we are. We are a corporation. We have short-term hold properties, and we have rental properties.
Slide 29 I build more credibility with this slide and show them that we have a presence here in the area with an office, a website, and an email address. I don’t belabor this. I just show them that there are a lot of different ways to reach us.
Slide 30 This is a picture of our office. Credibility slide.
Slide 31 This is the front page of our website. Credibility slide.
Slide 32 I went into the web site to show them the property listings that we’ve got. And I encourage them to go out and take a look at the web site if they’d like.
Slide 33 This is a picture of one of my houses that I had on an earlier slide. What I do here is, rather than talk about houses, I want to talk about how I’ve helped people. I explain how I helped the seller and how I helped the buyer in different deals. Not just on one house – I could list a number of different houses where we helped. And what I talk about here is my philosophy of a win-win-win where the seller wins, the buyer wins, and ultimately, we win.
Slide 34 I talk about what makes us unique. I come back to speed and knowledge. I also talk about integrity and systems. Here I tie together earlier points I made in the presentation. And I also point out that the people on my team have a shared vision.
Slide 35 This is my closing slide and my “call to action.” The goal is to have an individual meeting with them and have them become a Private Lender. I end my seminar with an invitation to join us in the back of the room for lunch or a dinner that I have set up for them.
Slide 36 I read these three (3) options to them.
Slide 37 I ask them to pull this form out of their folder, fill it out, & bring it to me in the back of the room. Then we will have lunch.
Transcript of "Private lending made easy seminar slides (power point)"
Private Lending Topic Secured Hassle-Free Superior Yields Copyright 2009 Martin Investment Group LLC
Private Lending Willis Martin President Martin Investment Group LLC.
WELCOME <ul><li>We are so glad that you are here and this presentation will help us get acquainted. </li></ul><ul><li>I really want you to understand what we have to offer. </li></ul><ul><li>I encourage questions, too. </li></ul><ul><li>I’ll stick around after the presentation to answer individual questions also. </li></ul><ul><li>This is not a public offering or offer or invitation to sell securities or make an investment. Securities are offered or sold by registration or exempt offering only. </li></ul>
Agenda <ul><li>What is Private Mortgage Lending? </li></ul><ul><li>What’s in it for you.? </li></ul><ul><ul><li>How you benefit. </li></ul></ul><ul><ul><li>These are examples, subject to change. </li></ul></ul><ul><li>Please hold your questions for two reasons: </li></ul><ul><ul><li>1) I’ll probably answer it anyway. </li></ul></ul><ul><ul><li>2) Some folks have time constraints. </li></ul></ul>
How Does Your Bank Make Money Today? <ul><li>They take in money on CDs. (You) </li></ul><ul><li>They then loan the money out at a superior rate of interest to other people to buy houses. (Me) </li></ul>I am cutting out the middleman.
Private Lender Program Overview <ul><li>We buy & sell houses. </li></ul><ul><li>To buy houses, we prefer to borrow money from private individuals. </li></ul><ul><li>We pay you up to 8% to use your money. </li></ul><ul><li>It is really a very simple plan. </li></ul>
Private Lender Program How it Works <ul><li>1) We locate a property we want to buy. </li></ul><ul><li>2) We borrow from you to purchase the property. </li></ul><ul><li>3) We have a formal closing and you get a mortgage on the home with other important documents. </li></ul>Availability of cash allows us to buy at a discount.
How it works Private Lender Purchase House Documents Securing Loan Tenant Buyer 8% Interest Payments Rent Payment
Private Lender Program Payments <ul><li>1) We will make monthly payments if you like a monthly income. </li></ul><ul><li>Or </li></ul><ul><li>2) The interest accrues until the house is sold and you get one check for principal and interest. </li></ul>
Early Withdrawal of Your $100,000 CD Yield 12-Month Return 2% $2,000 8% $8,000 A bank’s 6-month penalty is only $1,778 on this CD. You still would make $4,444 more even with the penalty. There is NO withdrawal penalty with us
Private Lender Program $100,000 Loan Sample <ul><li>$100,000 x 8% = $2,000 per month. </li></ul><ul><li>This is $8,000 per year. </li></ul><ul><li>A bank CD @ 2% pays $2000 per year. </li></ul>That’s a difference of $4,444 per year!!!
How Can We Buy Houses So Far Below Market Value? <ul><li>Our specialty is distressed properties that usually need renovated. </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 taking ugly, vacant homes that are eye sores and putting them back in use after renovation. </li></ul>
Documents Securing Your Loan <ul><li>Promissory Note </li></ul><ul><li>Mortgage </li></ul><ul><li>Hazard Insurance Policy </li></ul><ul><li>UCC-1 Filing </li></ul><ul><li>Title Insurance </li></ul><ul><li>Appraisal </li></ul>Lenders have no expense!
Your BIGGEST Concern Protection of Principal <ul><li>#1 Rule: Money borrowed is no higher than 70.00% loan-to-value after renovated. </li></ul>Additional security because we don’t over-leverage the property.
70.00% Loan-to-Value $100,000 After- Repaired Value $70,000 Max Loan There Is Always Plenty of Equity Above Your Loan.
Take Control Of Your Future <ul><li>Are You: </li></ul><ul><li>Retired </li></ul><ul><li>Laid Off </li></ul><ul><li>Have You: </li></ul><ul><li>Quit Your job </li></ul>
<ul><li>You can self direct your IRA (Traditional/Roth) or pension plan. </li></ul><ul><li>Your returns stay tax deferred or tax free. </li></ul><ul><li>It’s simple, easy and we do the work. </li></ul>Do You Have Money in IRA’s, 401K Pension Plans
You’re In Control We Do the Paperwork <ul><li>Open account with IRA: </li></ul><ul><ul><li>(Called Custodian) </li></ul></ul><ul><li>Rollover funds to Equity Trust: </li></ul><ul><ul><li>From your current custodian </li></ul></ul><ul><li>Self direct funds to closing </li></ul><ul><li>You earn 8% </li></ul><ul><li>When house sells (Closes), funds are sent directly back to your custodian. </li></ul><ul><li>You decide if you do it again! </li></ul>
Whole Life Insurance Policies? <ul><li>Borrow your cash value, which is earning low rates of return </li></ul><ul><li>Loan back out to Martin Investment Group LLC. to buy houses </li></ul><ul><li>You earn 8% </li></ul>
People Who Sell us Houses <ul><li>Banks </li></ul><ul><li>Private Individuals </li></ul><ul><li>Realtors </li></ul>
People Who Rent Then Buy Our Houses <ul><li>Achieve the American Dream of homeownership </li></ul><ul><li>Many could not buy without our special programs and willingness to go the extra mile </li></ul>
What Happens to My Loan if Willis Dies <ul><li>Business is structured to sell properties and pay you off. Your loan is still secured by the property. </li></ul><ul><li>The property will be sold and your principal and interest will be paid as agreed. </li></ul>
Agenda <ul><li>Private Lender Program </li></ul><ul><li>Company Overview </li></ul><ul><ul><li>History </li></ul></ul><ul><ul><li>Dream Team </li></ul></ul>
Company Story <ul><li>Three statisticians went hunting in the woods. Before long, one of them pointed to a plump pigeon in a tree, and the three of them stopped and took aim. The first fired, missing the bird by a couple of inches to the left. Immediately afterwards the second fired, but also missed, a couple of inches to the right. The third put down his gun exclaiming, "Great shooting lads, on average I reckon we got it..." Unfortunately in business today, this analogy may be all to prevalent. At Martin Investment Group we believe average is failing. We much prefer the Macy's approach. "Be everywhere, do everything, and never fail to astonish the customer." </li></ul><ul><li>Our goal is to grow the company by providing affordable housing to tenants and 1 st time homeowners. </li></ul><ul><li>In time, its scope will encompass Vancouver and the surrounding area. </li></ul>
Company Story Continued <ul><li>The company is a private for-profit real estate investing company. </li></ul><ul><li>We acquire, rehab, and lease residential and, at times, commercial real estate. </li></ul>
A New Perspective <ul><li>That word has meaning for us. </li></ul><ul><li>It was chosen because it is the way we want to treat our customers, our suppliers, and each other. </li></ul>
Competitive Advantage <ul><li>Our competitive advantage is speed to purchase a property and knowledge of creative real estate techniques. </li></ul>
Martin Investment Group LLC. <ul><li>We are a Corporation. </li></ul><ul><li>Short-term hold properties. </li></ul><ul><li>Manage rentals. </li></ul>
How To Find Us <ul><li>Office Location: 14119 NE 89th Ave , Vancouver, WA 98662. </li></ul><ul><li>Mailing Address: 14119 NE 89th Ave , Vancouver, WA 98662. </li></ul><ul><li>Web Site: www.martininvestment.com </li></ul><ul><li>E-Mail: [email_address] </li></ul>
Our Office Insert Picture of Your Office Here.
Our Website Insert Screen Shot of Your Website Here.
Properties Listed Insert Screen Shot of Your Properties from Your Website, or List Your Properties Here.
Houses Purchased Insert Picture of a House or Houses You Have Purchased.
Critical Success Factors <ul><li>What makes our company unique. </li></ul><ul><ul><li>Fast, Flexible Real Estate solutions. We make customers not sales.. </li></ul></ul><ul><li>What makes our company successful. </li></ul><ul><ul><li>Teamwork, drive, focus, & hard work. </li></ul></ul>A shared vision.
The Next Step ? <ul><li>By now you know how this program works and how you can earn 8% starting today. </li></ul><ul><li>You have three options: </li></ul>We hope you decide to join our team
The Next Step ? <ul><li>1) Option One - Do nothing. This isn’t for you. Can you give us names of folks that you feel it would serve. </li></ul><ul><li>2) Option Two - Set up a one-on-one meeting before you leave to discuss more details. </li></ul><ul><li>3) Option Three - Fill out the form and leave it with us. We’ll be in touch. </li></ul>
Commitment Form <ul><li>Name __________ </li></ul><ul><li>Address ________ </li></ul><ul><li>City ___________ </li></ul><ul><li>YES! I would like to get started as soon as possible. </li></ul>