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Palmer Mgmt LLC Credibility PP


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Palmer Mgmt LLC Credibility PP

  1. 1. Private Mortgage Investments High Yield Investments Secured by Real Estate 3/20/2009
  2. 2. Private Mortgage Investments Kevin Palmer President Palmer Management, LLC 3/20/2009
  3. 3. Disclaimer Please carefully consider Palmer Management, LLC's 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. 3/20/2009
  4. 4. WELCOME Glad you could be here this afternoon. We have a exciting and profitable program for you to understand Please feel free to ask questions and participate in the presentation If you have further questions we can schedule a one-on-one meeting at a later date. 3/20/2009
  5. 5. Agenda Private Investor Program 1st Mortgage Program 2nd Mortgage Program Company Overview History Dream team Questions 3/20/2009
  6. 6. Agenda Private Investor Program 1st Mortgage Program 2nd Mortgage Program Company Overview History Dream team Questions 3/20/2009
  7. 7. “More millionaires have created their wealth through real estate than any other endeavor” Andrew Carnegie 3/20/2009
  8. 8. Private Investor Program Overview We buy and sell 1 to 5 houses per month To fund our deals we generally borrow money from banks at 70% to 80% of value and borrow the balance from private individuals Or we borrow 100% of the purchase price from private individuals We pay private investors 9% for 1st mortgage money or 12% for 2nd mortgage money 3/20/2009 We typically use your money for 1-3 years
  9. 9. Private Investor Program How it works We typically buy Pre-Foreclosure and Bank owned homes We negotiate to buy a house that is typically 35% to 65% below market At closing we borrow from you the private investor to purchase the property At the closing you get a mortgage and insurance as security We make payments to you on the scheduled dates 3/20/2009
  10. 10. Private Investor Program Guidelines - 1st Mortgage Program 1st Mortgage Program 1. $50,000 minimum 2. Up to 75% LTV 3. 9% Interest 4. Numerous payment options (monthly, quarterly, ect.) 5. 1-3 years (we allow early withdrawal without any penalties) 3/20/2009
  11. 11. Private Investor Program Guidelines - 2nd Mortgage 2nd Mortgage Program Program 1. $5,000 minimum 2. 12% Interest 3. Numerous payment options (monthly, quarterly, ect.) 4. Up to 95% LTV 5. 1-3 years (we allow early withdrawal without any penalties) 3/20/2009
  12. 12. 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) 3/20/2009
  13. 13. $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 Investor 3/20/2009
  14. 14. $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 Investor 3/20/2009
  15. 15. Our Target Property Average Purchase Price $10,000 - $250,000 Ramsey or Dakota County Repair Cost $8,000 – $35,000 Typically 3 to 5 bedrooms and 1.5 baths Time to renovate and rent or sell is less that 90 days House will rent for $950 to $1,800 per month Typical Loan is $100,000 or $750 per month Our profit is the spread between the rent and your interest paymentthe 9% interest. Rent payment pays 3/20/2009
  16. 16. People Who Sell Us Houses Foreclosures (80%) Banks HUD VA Freddie Fannie Private Individuals (15%) Realtors (5%) 3/20/2009
  17. 17. People Who Rent then Buy our Houses We have Tenant/Buyers who plan to rent for a year or two then purchase the home 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 own 3/20/2009
  18. 18. How Do We Protect You The Investor? We collect rent from our tenants though careful negotiations or the court actions, if needed We require a 3% to 10% non-refundable deposit from our tenant/buyers which dramatically reduces non-payment issues For monthly rentals we require at least two months security to protect both you and us We will never default on a loan - We will 3/20/2009 pay you out of our pocket, if needed
  19. 19. Three Documents Securing Your Investment Promissory Note signed at time of investment by Palmer Management LLC (Personal Guarantees Upon Request) Recorded first or second mortgage Certificate of insurance naming you as additional insured 3/20/2009
  20. 20. Your BIGGEST Concern Protection of Principle 1st Mortgage Program – we never borrow more 75% Loan-to-Value We typically buy 35% to 65% below market We then build in equity by rehabbing the property ($8,000 to $35,000) We find quality tenants who give us large up front deposits We aggressively manage our properties to make sure tenants pay on time and maximize the property value 3/20/2009
  21. 21. Compare Private Lending Versus Hard Money Private Lender Lenders Hard Money 9% to 12% 15% or Higher One Point Fee 5 to 10 Points No Credit Check Credit Score 600+ 5 Year Term 6 to 12 Months No Back End Fees 2 to 5 Point Backend Total Cost < 13% Total Cost >25% This Why We Use Private Lenders Versus Hard Money Lenders 3/20/2009
  22. 22. Appreciation Helps Too!!!!! Price Increase 1995 -2005 3/20/2009
  23. 23. Questions ??? 3/20/2009
  24. 24. Can We Accept IRA Money? We can accept loans form IRA & Roth investments We Recommend Entrust Midwest or Equity Trust Company as the Third part Administrator Located in Plymouth, MN and Elyria, Ohio Allow self directed investments in real estate from both an IRA or ROTH account 3/20/2009
  25. 25. SEC Registration Issues These secured mortgage notes are exempt transactions pursuant to Section 203 (d) of the Minnesota code No registration is require as long as we stay below 25 investors and only deal with Minnesota residents 3/20/2009
  26. 26. Agenda Private Investor Program 1st Mortgage Program 2nd Mortgage Program Company Overview History Dream team Questions 3/20/2009
  27. 27. Palmer Management , LLC A Limited Liability Company We hold properties both short and long term 4+ years of experience Manage Rentals Currently own 6 properties with $ 1.1M in asset value 3/20/2009
  28. 28. Palmer Management, LLC Who Is Kevin Palmer? 2% Years Old Engaged – Jessica Rainey Son named Kaleb – 4 Years Little Girl on the way Home – St. Paul, MN A.A.S – Rasmussen College (2002-2005) Business Management - Sales and Marketing 2 Years as a Supervisor at Alexander’s Mobility Services, leading 3-32 men per job. Currently Supervising at Greatland Transportation Systems Inc. A local family owned company. 3/20/2009
  29. 29. Company Story We started in April 2006 with the purchase of a SFR in St. Paul, MN. Since that first purchase, we have become serious property investors in Ramsey and Washington county. We have grown to hold over 6 (consisting of 13 units and over 25 acres of land) properties worth over $1.3 million Our goal is to grow the company to hold and manage about 200 units by providing affordable housing to tenants and 1st time homeowners 3/20/2009
  30. 30. 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 estate 3/20/2009
  31. 31. Organization Chart President Administrative Assistant Office Manager Acquisition Property Sales Manager Manager Manager 3/20/2009
  32. 32. 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 3/20/2009
  33. 33. How to find us Mailing Address: 1911 Suburban Ave Suit 140 St. Paul, MN 55119 Web Site: E-Mail: Cell Phone: 651-792-6147 Office Phone: 651-730-2345 Fax 651-294-9276 Toll Free: 888-309-5611 3/20/2009
  34. 34. Questions ??? 3/20/2009
  35. 35. 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 want a chance to answer any questions and appreciate the opportunity to work with you 3/20/2009