Private Lending 501

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Full course on Private Mortgage Lending - Why, What, How, as well as the risks and tax impacts.

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Private Lending 501

  1. 1. Making Money with Private Lending … … banks aren’t lending, Private Lenders are filling the void - Ron Nawrocki - George Henderson
  2. 2. Investment Disclaimer <ul><li>Nothing presented in this financial education seminar shall constitute the provision of investment advice by the presenters or any company sponsoring this seminar, and nothing provided or stated in the seminar should be interpreted as such. </li></ul><ul><li>In addition to and not in limitation of the foregoing disclaimer, the sponsors will not provide investment advice regarding any specific security or fund during this financial education seminar and nothing should be interpreted as such. No specific recommendations for the purchase or sale of any particular investment shall be deemed given to any attendees of this financial education seminar, and the mention of any particular security or investment is for example only. </li></ul>
  3. 3. Evaluating any Investment … 4 tests <ul><li>Liquidity </li></ul><ul><li>Safety </li></ul><ul><li>Rate of Return </li></ul><ul><li>Tax Consequences </li></ul><ul><li>Other: Social benefit </li></ul>Will Rogers: &quot;I am more concerned about the return of my money, rather than the return on my money”
  4. 4. 4 Things you can do with your money <ul><li>Spend it </li></ul><ul><li>Lend it (IGA) </li></ul><ul><li>Invest to own something (IGA) </li></ul><ul><li>Give it away </li></ul><ul><li>Lose it </li></ul>Today’s Topic
  5. 5. Conventional wisdom … <ul><li>The year 2005 … </li></ul><ul><li>Invest with big name gurus with high returns </li></ul><ul><li>You can’t get ahead with guaranteed fixed return investments </li></ul>MYTH
  6. 6. Reality on gurus with high returns … <ul><li>Some are crooks </li></ul><ul><li>Know who you’re dealing with </li></ul><ul><li>Read what they’re investing in </li></ul>
  7. 7. Goggle:
  8. 8. Who is Ron (The Ronald) Nawrocki? <ul><li>Phoenix area resident since 2007 </li></ul><ul><li>Lived & worked in Europe from 1994 - 2007 </li></ul><ul><li>Cornell Univ. Engineer and MBA in Finance </li></ul><ul><li>Manager at Xerox, Scott Paper, Bell Atlantic </li></ul><ul><li>CFO at Pepsi, Hortex, Pioneer Investments, McLane </li></ul><ul><li>Rotarian, Toastmaster, Who’s Who of Entrepreneurs, AZREIA, SW Valley Chamber, CrimShield, BBB </li></ul><ul><li>Author – “Investor Insights” in Hungary & Poland </li></ul><ul><li>Investor – 30 years </li></ul><ul><li>Full-time investor since 2001 </li></ul>
  9. 9. Outline <ul><li>What is a Private Lender? </li></ul><ul><li>Why do it? </li></ul><ul><li>How … in detail </li></ul><ul><li>Legal & Tax aspects </li></ul><ul><li>Risks </li></ul><ul><li>Simplified, Safer Lending </li></ul>
  10. 10. References … <ul><li>“ MAKE YOUR MONEY “PRIVATE MORTGAGE </li></ul><ul><li>MAKE MONEY FOR YOU” INVESTING” </li></ul><ul><li>- Amarjit Ahluwalia  - Teri B. Clark & </li></ul><ul><li> Matthew Stewart Tabacchi </li></ul>
  11. 11. What is a Private Lender <ul><li>Survey … </li></ul><ul><li>How many here are Private Lenders? </li></ul><ul><li>Any famous examples? </li></ul><ul><li>Warren Buffett </li></ul><ul><li>Carlos Slim </li></ul>
  12. 12. Carlos Slim <ul><li>Interested at 14%? </li></ul>
  13. 13. Carlos Slim <ul><li>Did The New York Times call you? </li></ul><ul><li>Should they next time? </li></ul><ul><li>YES ! </li></ul>
  14. 14. Definition … <ul><li>A private individual, company or corporation lending money against some collateral </li></ul><ul><li>Examples: </li></ul><ul><li>Bank CD’s … collateral is FDIC </li></ul><ul><li>Bonds </li></ul><ul><li>Loan to your relatives … collateral? </li></ul><ul><li>Tax liens – up to 16% in Arizona </li></ul><ul><li>Angel investment </li></ul>
  15. 15. More examples … <ul><li>“ Hard Money” loans to real estate investors … backed by deeds </li></ul><ul><li>Mortgage loans on income producing real estate … backed by deeds </li></ul><ul><li>Loan backed by Mortgage Loan </li></ul><ul><ul><li>Collateral Assignment </li></ul></ul><ul><li>How many here are Private Lenders? </li></ul>
  16. 16. Outline <ul><li>What is a Private Lender? </li></ul><ul><li>Why do it? </li></ul><ul><li>How … in detail </li></ul><ul><li>Legal & Tax aspects </li></ul><ul><li>Risks </li></ul><ul><li>Simplified Lending </li></ul>
  17. 17. Why be a Private Mortgage Lender? <ul><li>Options: </li></ul><ul><ul><li>CD’s – 0.75-1.5%; T-Bills – 0.25% </li></ul></ul><ul><ul><li>Bonds – better return, but capital risk with “I” word </li></ul></ul>
  18. 18. 4 Tests for any Investment <ul><li>Liquidity </li></ul><ul><ul><li>Monthly Interest checks </li></ul></ul><ul><ul><li>Can have short maturities (6 mo. – 10+ yr.) </li></ul></ul><ul><ul><li>Can be sold or Used to get Loan </li></ul></ul><ul><li>Safety </li></ul><ul><ul><li>Backed by Trust Deed, Title policy, Insurance </li></ul></ul><ul><ul><li>Real estate does not go to zero </li></ul></ul><ul><ul><li>Value does not drop as interest rates rise </li></ul></ul>
  19. 19. 4 Tests for any Investment <ul><li>Rate of Return </li></ul><ul><ul><li>6% and higher </li></ul></ul><ul><ul><li>Linked to mortgage rates for investors </li></ul></ul><ul><li>Taxes </li></ul><ul><ul><li>Fully taxable </li></ul></ul><ul><ul><li>OPM used is tax deductible </li></ul></ul><ul><ul><li>Unless in an IRA </li></ul></ul>
  20. 20. Economic Headlines
  21. 21. Financial Headlines
  22. 22. ‘The Ronald’ on Problems … <ul><li>“ People become Journalists … because they weren’t good at math” </li></ul><ul><li>Biggest Problem – Banks aren’t lending </li></ul>
  23. 23. More Headlines
  24. 24. ‘The Ronald’ on Problems … <ul><li>Biggest Problem – Banks aren’t lending </li></ul><ul><li>There are no problems – Only Opportunities disguised </li></ul><ul><li>(1+2) Banks aren’t lending is the Biggest Opportunity – For Who? </li></ul>Private [Mortgage] Lenders !
  25. 25. 4 Tests for any Investment <ul><li>Social Benefit </li></ul><ul><ul><li>Private Lenders help the Economy … more than the Government ! </li></ul></ul>
  26. 26. Outline <ul><li>What is a Private Lender? </li></ul><ul><li>Why do it? </li></ul><ul><li>How … in detail </li></ul><ul><li>Legal & Tax aspects </li></ul><ul><li>Risks </li></ul><ul><li>Simplified Lending </li></ul>
  27. 27. How to be a Private Lender <ul><li>Understand Process </li></ul><ul><li>Know Documents </li></ul><ul><li>Find & Fund Deals </li></ul>
  28. 28. Understand Process <ul><li>YOU are the Bank ! </li></ul><ul><li>Find & Check Borrowers </li></ul><ul><li>Evaluate the Deals </li></ul><ul><li>Determine what YOU want </li></ul><ul><li>Negotiate & Agree T&C’s </li></ul><ul><li>Close with Title Company </li></ul><ul><li>Cash your checks ! </li></ul>
  29. 29. Know the Documents <ul><li>Note: Your agreement with Borrower </li></ul><ul><ul><li>Personal Guarantee or Recourse </li></ul></ul><ul><ul><li>Property Taxes & Insurance kept current </li></ul></ul><ul><li>Trust Deed: Pledges property if Note T&C’s not met </li></ul><ul><ul><li>Must be recorded </li></ul></ul><ul><li>Lender’s Title Insurance </li></ul><ul><li>Insurance: You must be Co-beneficiary or Mortgagee </li></ul><ul><li>Lender’s Instructions: How you want the deal handled </li></ul><ul><li>Good News = Title Company handles all these ! </li></ul>
  30. 30. Find Borrowers <ul><li>Banks aren’t lending – Borrowers everywhere </li></ul><ul><li>Tell your network you are Private Mortgage Lender </li></ul><ul><li>Attend Business Mixers, Investment Clubs </li></ul><ul><li>Tell Real Estate Agents, Appraisers </li></ul><ul><li>Mortgage Brokers? </li></ul><ul><li>Simplest: Call ‘The Ronald’ </li></ul>
  31. 31. Check Borrowers <ul><li>Experience in Real Estate </li></ul><ul><li>Are they making money? </li></ul><ul><li>Credit Report/Score </li></ul><ul><li>References, BBB </li></ul><ul><li>Visit properties </li></ul><ul><ul><li>Current </li></ul></ul><ul><ul><li>Past </li></ul></ul><ul><li>Do they know more than you? </li></ul>
  32. 32. Evaluate the Deals … <ul><li>Fix & Flip vs Income Producing </li></ul><ul><ul><li>Which is safer? </li></ul></ul><ul><ul><li>Their own home is not IGA ... Avoid! </li></ul></ul><ul><li>Size of loan vs Your funds available </li></ul><ul><li>Terms requested </li></ul><ul><li>Location – NOT too important </li></ul><ul><li>Condition of property </li></ul><ul><li>Review a few before Lending </li></ul>
  33. 33. Evaluate the Deals … Fix & Flip <ul><li>Value? </li></ul><ul><ul><li>Current </li></ul></ul><ul><ul><li>ARV – After Repair Value </li></ul></ul><ul><li>LTV: Loan to Value: Loan / ARV </li></ul><ul><ul><li>Suggest Maximum 70% </li></ul></ul><ul><li>% of Purchase Price </li></ul><ul><ul><li>Suggest Maximum 90% </li></ul></ul><ul><li>Term of Loan </li></ul>
  34. 34. Evaluate the Deals … Income Producing <ul><li>Current Value? </li></ul><ul><li>LTV: Loan to Value: Loan / Value </li></ul><ul><ul><li>Suggest Maximum 90% </li></ul></ul><ul><li>% of Purchase Price </li></ul><ul><ul><li>Suggest Maximum 90% </li></ul></ul><ul><ul><li>Mortgageable Equity [ Avoid negative cash flow] </li></ul></ul><ul><li>Term of Loan </li></ul>
  35. 35. Determining Value <ul><li>Appraisal </li></ul><ul><ul><li>Most accurate, Most expensive </li></ul></ul><ul><ul><li>Difficult in Today’s Market </li></ul></ul><ul><li>MLS (imapp) Comps </li></ul><ul><ul><li>Square Footage & Value basis </li></ul></ul><ul><ul><li>Some neighborhoods have only REO sales </li></ul></ul>
  36. 36. MLS Comps
  37. 37. Comps
  38. 38. Comps
  39. 39. Determining Value (Cnt’d) <ul><li>County Appraiser, Recorder & Taxes </li></ul><ul><ul><li>http://www.maricopa.gov/Assessor/ParcelApplication </li></ul></ul><ul><ul><li>http://recorder.maricopa.gov/recdocdata </li></ul></ul><ul><ul><li>http://treasurer.maricopa.gov </li></ul></ul><ul><li>For Income Producing </li></ul><ul><ul><li>Value based on Rental Income </li></ul></ul><ul><ul><li>Hint: Value ~= 120 rent payments </li></ul></ul>
  40. 40. Appraiser
  41. 41. Appraiser
  42. 42. Recorder
  43. 43. Recorder
  44. 44. Mortgageable Equity <ul><li>or Investable Equity </li></ul><ul><li>Not for Fix & Flip – Key for: </li></ul><ul><ul><li>Income Producing Property </li></ul></ul><ul><ul><li>Lending against Mortgage Note </li></ul></ul><ul><li>Factors in Equity , LTV ; Interest rate(s), Cash Flow to make all Payments </li></ul><ul><li>Best Ref: Greg Pinneo (approx. $3,000 course) </li></ul>
  45. 45. Determine what YOU want <ul><li>Which Borrower? </li></ul><ul><li>Term of Loan? </li></ul><ul><ul><li>Fix & Flip are shortest </li></ul></ul><ul><ul><li>Income Producing 3 years or more </li></ul></ul><ul><li>LTV? </li></ul><ul><li>Interest Rate? </li></ul><ul><li>Monthly, Quarterly, Accrued? </li></ul>
  46. 46. Finally <ul><li>Negotiate & Agree T&C’s </li></ul><ul><li>Get to know your Escrow Officer </li></ul><ul><li>Close with reputable Title Company </li></ul><ul><li>Cash your checks each month </li></ul>
  47. 47. Outline <ul><li>What is a Private Lender? </li></ul><ul><li>Why do it? </li></ul><ul><li>How … in detail </li></ul><ul><li>Legal & Tax aspects </li></ul><ul><li>Risks </li></ul><ul><li>Simplified Lending </li></ul>5 Minute Break
  48. 48. Legal Aspects <ul><li>Private Lending has few complications </li></ul><ul><li>Title Co. handles most paperwork </li></ul><ul><ul><li>Lawyer not needed </li></ul></ul><ul><li>B.I.Solutions has Lawyer retained with volume of loans taken & made – will soon need: </li></ul><ul><ul><li>SEC registration </li></ul></ul><ul><ul><li>Hard Money lender license </li></ul></ul><ul><li>Mortgage Pools require SEC registration – Avoid </li></ul>
  49. 49. Legal Aspects <ul><li>Lending to investors: “ Commercial loan on Residential Property ” </li></ul><ul><ul><li>Does not fall under residential mortgage licensing </li></ul></ul><ul><li>Several lenders partnering - Use LLC </li></ul><ul><ul><li>NOT mortgage pool </li></ul></ul><ul><ul><li>Simple Operating Agreement to designate % </li></ul></ul><ul><li>Or Largest takes 1 st position, next 2 nd … </li></ul>
  50. 50. Tax Aspects <ul><li>Interest Earned is fully taxable </li></ul><ul><li>Income tax deferred/avoided if loan in IRA </li></ul><ul><ul><li>Must be self-directed </li></ul></ul><ul><li>Borrower (if Company) should issue 1099-INT </li></ul><ul><li>Private Lender, like Financial Institution, must issue 1098 & 1096 to individual borrower </li></ul><ul><ul><li>Can issue for company </li></ul></ul>
  51. 51. Tax Aspects <ul><li>Using OPM: must issue 1099-INT & 1096 to private lender to be investment interest (tax deductible), except </li></ul><ul><ul><li>Corporation – Bank or B.I.Solutions </li></ul></ul><ul><ul><li>Using mortgage or HELOC </li></ul></ul><ul><ul><li>Credit Card 0% offer - transfer directly to borrower </li></ul></ul>
  52. 52. Tax: 1099-INT
  53. 53. Tax: 1099-INT
  54. 54. Tax: 1098
  55. 55. Tax: 1098
  56. 56. Risks <ul><li>Lower risk than tax liens, bonds, equity, angel investing, private equity … </li></ul><ul><li>Borrower Performance (You’re the bank) </li></ul><ul><ul><li>Foreclosure cost $2,000 - $4,000 </li></ul></ul><ul><ul><li>Handled by Lawyer or Title Co. </li></ul></ul><ul><li>Property Valuation </li></ul><ul><li>Cost & Time to resell property </li></ul><ul><li>Money on the side-lines earning ~0% </li></ul>
  57. 57. Outline <ul><li>What is a Private Lender? </li></ul><ul><li>Why do it? </li></ul><ul><li>How … in detail </li></ul><ul><li>Legal & Tax aspects </li></ul><ul><li>Risks </li></ul><ul><li>Simplified Lending </li></ul>
  58. 58. Do it Yourself Lending <ul><li>Property? Property Property </li></ul><ul><li>Client Client Client? </li></ul><ul><li>? ? ? </li></ul><ul><li> Lender </li></ul>
  59. 59. Simplified Lending <ul><li>Prop1 Prop2 Prop3 … PropX </li></ul><ul><li>Client1 Client2 … ClientY </li></ul><ul><li>B.I.Solutions </li></ul><ul><li>Lender Lend2 Lend3 … LendZ </li></ul>
  60. 60. Simplified Lending … B.I.Solutions Corp. <ul><li>Plus: </li></ul><ul><li>Local, with track record of success, references </li></ul><ul><li>Backed by $multi-million portfolio, strong cash flow </li></ul><ul><li>Guaranteed repayment & interest payments </li></ul><ul><ul><li>Regardless of Client payment </li></ul></ul><ul><li>Referral based Clients calling weekly </li></ul><ul><li>Handles Credit checks, Valuation, Mortgageable Equity </li></ul><ul><li>Chooses the best tenant/buyers and borrowers to fund </li></ul>
  61. 61. Simplified Lending … B.I.Solutions Corp. <ul><li>Plus: </li></ul><ul><li>Handles all tax filings (except 1096 signature) </li></ul><ul><ul><li>Including those for OPM borrowed </li></ul></ul><ul><li>Low $10,000 Minimum – many loans to chose from </li></ul><ul><li>Minus: </li></ul><ul><li>Slightly Lower interest rate – How’s your wife? </li></ul><ul><ul><li>But much higher than CD’s, T-Bills </li></ul></ul><ul><li>Only residential properties (for now) </li></ul><ul><li>Minimal involvement in multiplex apartments </li></ul>
  62. 62. The Business <ul><li>B.I.Solutions Corp. - 2 Divisions … </li></ul><ul><li>Buying Solutions – Home buyers – who can’t qualify for a mortgage </li></ul><ul><li>Investing Solutions – active real estate Investors who need “Fix & Flip” loans </li></ul>Banks aren’t lending – we have backlog of Clients
  63. 63. The Benefits … <ul><li>We help people make money in Real Estate … </li></ul><ul><li>Who? </li></ul><ul><li>Home buyers who can’t get a mortgage </li></ul><ul><li>Fix & Flip Investors </li></ul><ul><li>Cities & Towns </li></ul><ul><li>Realtors </li></ul><ul><li>Mortgage Brokers </li></ul><ul><li>Title Companies </li></ul>Private Lenders ! Electricians Plumbers Inspectors Appraisers Painters Landscapers Bank shareholders! Investors ! Phoenix Economy!
  64. 64. The Business <ul><li>We invest in people </li></ul><ul><li>Investment backed by Trust Deed </li></ul><ul><li>Clients get a great deal </li></ul><ul><li>Private Lenders earn a very good return </li></ul><ul><li>We create local jobs, help local economy </li></ul>Earn money rather than paying higher Taxes !
  65. 65. 1. Fixed Rate*, guaranteed <ul><li>Monthly interest checks, $10,000 min. … </li></ul><ul><li>6 mo. “BI MP3” – 6% </li></ul><ul><ul><li>No early withdrawal penalty </li></ul></ul><ul><li>12 mo. “BI MP3” – 6.5% </li></ul><ul><li>3 yr. “BI MP3” – 7% </li></ul><ul><li>Investment backed by full portfolio of properties , plus personal guarantee </li></ul>Private Lenders/Investors – also Live the American Dream !
  66. 66. 2. Fixed Rate*, guaranteed <ul><li>Investment backed by a Deed of Trust </li></ul><ul><li>12 mo. – 6.5% </li></ul><ul><li>3 yr. – 7.0% </li></ul><ul><li>Creative investing: </li></ul><ul><ul><li>Convert Bank CD, earn $1,000 or more </li></ul></ul><ul><ul><li>Take mortgage on home and earn $000’s/yr. </li></ul></ul><ul><li>* Rate based on investor mortgage rates at time of investment </li></ul>
  67. 67. Interest Payment
  68. 68. Conventional wisdom … in 2009 <ul><li>All debt is bad </li></ul><ul><li>Credit Cards the worst </li></ul>MYTH
  69. 69. Reality on credit cards … <ul><li>Do you ever get 0% offers from credit cards? </li></ul><ul><ul><li>What do you do with them? </li></ul></ul><ul><li>I invest them in B.I.Solutions (not shred) </li></ul><ul><li>In 2008 I earned $1,500 after all fees </li></ul><ul><li>I now get more offers for longer periods … and my credit score rose </li></ul><ul><li>Shredders are not IGA’s ! </li></ul>Debt used wisely helps you build wealth !
  70. 70. Some Trust Deed Loans <ul><li>Loan to Value (LTV) 65%; 1 yr ; 6.5%* </li></ul><ul><li>Phx03: $115,380; 4-plex; 1 st position </li></ul><ul><li>Phx04: $200,000; 3-plex; 1 st </li></ul><ul><li>Phx05: $105,000; 1 st </li></ul><ul><li>Phx06: $ 105,000; 1 st </li></ul><ul><li>AvonX: $100.000; 1 st position (pending) </li></ul>
  71. 71. Toll1: 9416 W.Williams St <ul><li>1,761 sf; 3 Bdrm / 2.5 bath </li></ul><ul><li>Parcel: 101-27-602 </li></ul><ul><li>$1,295 lease payment (25% rebate) </li></ul><ul><li>Cash flow of $269/mo </li></ul><ul><li>Option for $194,900 – $205,470 </li></ul><ul><li>Mortgageable Equity (7%, 90% LTV): $25,000 </li></ul>
  72. 72. Some Trust Deed Loans <ul><li>Loan to Value (LTV) 90%; 3 yr ; 7.0%* </li></ul><ul><li>Toll1: $ 25,000; 2 nd position </li></ul><ul><li> $139,750; 1 st position </li></ul><ul><li>Toll2: $ 28,750; 2 nd </li></ul><ul><li> $150,500; 1 st </li></ul><ul><li>Avon1: $ 31,250; 2 nd </li></ul><ul><li> $150,500; 1 st </li></ul><ul><li>Glen1: $140,250; 1 st (best deal) </li></ul>
  73. 73. Some Trust Deed Loans <ul><li>Loan to Value (LTV) 90%; 3 yr ; 7.0%* </li></ul><ul><li>Phx02: $145,500; 1 st (pending) </li></ul><ul><li>Mesa2: $162,000; 1 st position </li></ul><ul><li>VerrX: ~$215,000; 1 st (new) </li></ul><ul><li>Phx04: $500,000; 7-plex; 1 st </li></ul>* Interest Rate & payments guaranteed, regardless of Client’s payments
  74. 74. A New Opportunity <ul><li>Loan to Value (LTV) ?? %; 3 yr ; 7.0%* </li></ul><ul><li>PeorX: $50,000; 1 st position </li></ul><ul><li>Domestic Violence Shelter at risk of foreclosure </li></ul>We help various types of Clients !
  75. 75. Why Teach this Course? <ul><li>B.I.Solutions Corp. is a group of Real Estate Investors </li></ul><ul><li>Our portfolio growth is slowed by the banks not lending </li></ul><ul><li>That “problem” is an opportunity for You … </li></ul><ul><li>We pay “private lenders” the same 6-7% we would pay banks! </li></ul><ul><ul><li>The principal and monthly interest is guaranteed </li></ul></ul><ul><li>We will teach this course all over the Valley … </li></ul><ul><li>Goal: 20,000 new Private Lenders, $300 million, to fix the Phoenix Economy ! </li></ul>
  76. 76. Bribe to fill-out Questionnaire … <ul><li>We need your feedback to improve the course </li></ul><ul><li>If you fill-out the form: </li></ul><ul><li>Enter in 2 nd drawing </li></ul><ul><li>We cover your CD pre-payment penalty to get into a similar maturity Private Loan with B.I.Solutions (thru 3/31/2009) </li></ul><ul><li>We buy you dinner for people you refer that become B.I.Solutions private lenders (they may buy you 2 dinners!) </li></ul>
  77. 77. Who is George Henderson? <ul><li>Resident of Avondale since 1995 </li></ul><ul><li>Worked in Finance as military officer and civil servant for 29 years </li></ul><ul><li>Retired civil servant and Lt Col USAF </li></ul><ul><li>BS in Accounting from University of Missouri </li></ul><ul><li>MBA from Pepperdine University </li></ul><ul><li>Ambassador for SW Valley Chamber of Commerce </li></ul><ul><li>Man of the Year 2008, Murph Community AME Church </li></ul><ul><li>Wealth Strategist with CSP Financial Group </li></ul><ul><li>T.E.A.M. Trained by Douglas Andrew author: Missed Fortune, Last Chance Millionaire, et.al. </li></ul>
  78. 78. Evaluating any Investment … <ul><li>Liquidity </li></ul><ul><li>Safety </li></ul><ul><li>Rate of Return </li></ul><ul><li>Tax Consequences </li></ul><ul><li>Other: Social benefit </li></ul>Will Rogers: &quot;I am more concerned about the return of my money, rather than the return on my money”
  79. 79. Risk Return Pyramid <ul><li>Speculative </li></ul><ul><li> High Risk </li></ul><ul><li>Growth </li></ul><ul><ul><li> </li></ul></ul><ul><li>Income, </li></ul><ul><li>Growth Risk </li></ul><ul><li>Income, </li></ul><ul><li>Safe </li></ul><ul><li>Commodities, Business Ventures </li></ul><ul><li>Aggressive Stocks, High Yield Bonds </li></ul><ul><li>Investment Real Estate, Blue Chip Stocks, Bonds </li></ul><ul><li>CD’s, T-Bills, Annuities, Private Lending </li></ul>
  80. 80. 3 Types of people … those who <ul><li>Pay interest </li></ul><ul><li>Earn interest </li></ul><ul><li>Pay interest to earn more interest </li></ul><ul><ul><li>Banks </li></ul></ul><ul><ul><li>B.I.Solutions Corp. </li></ul></ul><ul><ul><li>You? </li></ul></ul><ul><li>Earn less than they pay </li></ul>
  81. 81. Questions? <ul><li>Q&A time </li></ul>
  82. 82. Contact <ul><li>Ron Nawrocki (The Ronald) </li></ul><ul><li>B.I.Solutions Corp. </li></ul><ul><li>Verrado </li></ul><ul><li>1-623-249-4792 </li></ul><ul><li>[email_address] </li></ul><ul><li>www.TheRonald.us </li></ul>B.I.Solutions: P roven, P rofitable, and P ositioned for Growth

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