Private Lending 4-26-11


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Become a private lender and earn 10-12% on your money. Contact us now.

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  • Secured – by property and first trust deed. Hassle-free – we do all the work: buy house, rehab, sell. Superior yields – 10-12% and more vs. ½% or less.
  • In CDs, your interest rates are lower
  • Entrust Group, 7700 Irvine Center Drive, Suite 800, Irvine, CA
  • Point out that making money off the interest rate spread is what the banks and insurance companies are doing with your money. (This will get the audience to think of funds they have that are making very low rate of returns that they can invest at a much higher return.)
  • We don ’t buy in run-down or low-income neighborhoods. Banks don ’t sell REO;s any other way --- only directly via REO listing agents.
  • 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 we ’ve helped people. I explain how I helped the seller and how I helped the seller in different deals. Not just one house – I could like 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.
  • Please pull out this form from your packet and fill it out. I tell them to pull this form out of their folder, fill out, and bring it to me in the back of the room.
  • Private Lending 4-26-11

    1. 1. Private Lending <ul><li>Secured </li></ul><ul><li>Hassle-Free </li></ul><ul><li>Superior Yields </li></ul>
    2. 2. Too Good To Be True? <ul><li>No! To borrow money from “hard money” lenders, we have to pay </li></ul><ul><ul><li>12.5% interest </li></ul></ul><ul><ul><li>3.5 points up front (=3.5% </li></ul></ul><ul><ul><li>$1,100 processing fee. </li></ul></ul><ul><ul><li>Paying you 10% is win-win because we save close to 7% borrowing directly from you. </li></ul></ul>
    3. 3. Welcome <ul><li>Our company is Ultimate Venture LLC , a corporation, founded in January 2010. </li></ul><ul><li>We acquire, rehab and sell homes by buying for cash. </li></ul><ul><li>The corporate partners are David Stuard and Sheila Kirkland. </li></ul><ul><li>On all REO ’s Banks only accept cash, no financing, only cash. This is why we ask you to join us </li></ul>
    4. 4. Introductions <ul><li>David Stuard, manager </li></ul><ul><li>Sheila Kirkland, partner, financial manager </li></ul><ul><li>Eric Townsend, Esq., Attorney </li></ul><ul><li>Anne Clark, Director of Operations </li></ul><ul><li>Lorraine Wright, Chief Property Analyst </li></ul><ul><li>James McKinney, Accountant </li></ul>
    5. 5. Why “Ultimate” Venture? <ul><li>We feel that real estate provides: </li></ul><ul><li>The ultimate long-term appreciation . </li></ul><ul><li>The ultimate long-term security . </li></ul>
    6. 6. Thanks for coming. <ul><li>Are you tired of Low Bank Rates? </li></ul><ul><li>You can do much better than Bank CD ’s. </li></ul><ul><li>Learn today how you can make 10-12% on your money.* </li></ul><ul><li>* The return is limited to 10% if a secured debt obligation is used. When investing as a partner the 10% to 12% range shall apply. </li></ul>
    7. 7. Bank CD Rates (approx.) $100,000 12 months IRA B of A .60 % .60 % Chase .50 % .50 % Union Bank .60 % .40 %
    8. 8. How Does Your Bank Make Money? <ul><li>They take in Money for CDs (Yours). </li></ul><ul><li>Then they lend the money out at a higher rate of interest to other people to buy houses. (We ’re eliminating the bank, offering private lending.) </li></ul>
    9. 9. Private Money Lending <ul><li>What is Private Money Lending? </li></ul><ul><li>Learn what ’s in it for you. How can you benefit? </li></ul><ul><li>Please hold your questions - for now: </li></ul><ul><ul><li>I ’ll probably answer them anyway. </li></ul></ul><ul><ul><li>We will break for questions shortly. </li></ul></ul><ul><ul><li>3. Some folks have time constraints. </li></ul></ul>
    10. 10. Private Lending Program Overview <ul><li>To buy houses, we prefer to borrow money, or work in partnership with, private individuals such as you. </li></ul><ul><li>We pay you 10-12% to use your money. </li></ul><ul><li>We save 5-7% by not having to borrow from hard money lenders. </li></ul><ul><li>This is a win-win situation. </li></ul>
    11. 11. Private Lending Program How it Works <ul><li>We locate a property we want to buy. </li></ul><ul><li>We contact you and invite you to invest in this property. </li></ul><ul><li>Your funds will be wired directly to a trust account by you and only you. </li></ul><ul><li>Upon entering escrow, your funds will be transferred directly to an escrow account. </li></ul><ul><li>At close of escrow, you will receive the first trust deed to the property. </li></ul><ul><li>When the property is sold you get paid first. </li></ul>
    12. 12. Documents Securing Your Investment <ul><li>Trust Deed on the Property or Membership interest in an LLC. </li></ul><ul><li>Title Insurance. </li></ul><ul><li>Hazard Insurance (fire, theft, other losses). </li></ul><ul><li>Written Appraisal before the renovation. </li></ul><ul><li>Written appraisal when the renovation is completed. </li></ul>
    13. 13. Private Lender or LLC Member: 2 Interest Payment Options <ul><li>Quarterly payments. </li></ul><ul><li>Monthly payments, if you prefer a monthly income. These options apply only to long-term (minimum 1-year) investments. </li></ul><ul><ul><li>Example: Interest 12% per year = 1% per month. </li></ul></ul><ul><ul><li>On $200,000, this is a $2,000 monthly income. </li></ul></ul>
    14. 14. Private Lending Example $200,000 Loan <ul><li>$200,000 x 12% annual interest = $24,000/year. </li></ul><ul><li>A bank pays you only $1,000 a year at ½ of one percent. </li></ul><ul><li>That ’s a difference of $23,000 a year. </li></ul>
    15. 15. Investing smaller amounts: $50,000 for 1 project <ul><li>$50,000 x 10% annual interest = $1,666.67 for 120 days. </li></ul><ul><li>Collateral: second trust deed. </li></ul><ul><li>Principal and interest paid back at close of sale after rehab. </li></ul><ul><li>Investor to receive promissory note from our LLC. </li></ul>
    16. 16. Investing smaller amounts: $50,000 for 1 year <ul><li>$50,000 x 10% annual interest. </li></ul><ul><li>Monthly ($416.67) or quarterly ($1,250) interest payments. </li></ul><ul><li>Collateral: second trust deed. </li></ul><ul><li>Investor to receive promissory note from our LLC. </li></ul><ul><li>Principal returned after one year. </li></ul>
    17. 17. How Can We Buy Houses So Far Below Market Value? <ul><li>Our specialty is “ distressed ” houses that usually require major renovation. We see value in houses that others don’t see. </li></ul><ul><li>We buy directly from banks who desperately need to sell these greatly discounted properties. </li></ul><ul><li>We buy homes at foreclosure auctions . </li></ul><ul><li>We pay cash for each property </li></ul>
    18. 18. <ul><li>Money we borrow is no more than 75% of the value of the home after renovation. </li></ul><ul><li>This gives you additional security, because we don ’t over-leverage the property. </li></ul>Your BIGGEST Concern: Protection of Principal
    19. 19. There is always Plenty of Equity Above Your Investment. <ul><li>This provides a 25% cushion for the investor. </li></ul>25% cushion $300,000 ARV $225,000 Maximum Loan (75% of ARV)
    20. 20. Your Investment Options <ul><li>Short Term (3-4 months): 10% annual interest. </li></ul><ul><li>Longer Term (1 year or longer): 10-12% annual interest. </li></ul>
    21. 21. Our Guarantee to You <ul><li>We will pay you the interest rate as specified in your contract. </li></ul><ul><li>If the home does not sell in the time specified, we will pay you back your investment plus interest. </li></ul>
    22. 22. How We Make Sure the House Sells <ul><li>If a home does not sell within 60 days of close of escrow, we do the following: </li></ul><ul><li>Offer a substantial incentive bonus to the agent to sell the house. </li></ul><ul><li>Reduce the selling price. </li></ul><ul><ul><li>A reduction of up to 25% would still recover the investment – because we buy only houses that give us a cushion (discount) when we buy them. </li></ul></ul>
    23. 23. What Happens to My Investment if David Dies? <ul><li>The property will be sold and you will receive your principal and interest as agreed. </li></ul><ul><li>Your loan is still secured by the property. </li></ul><ul><li>This will be spelled out in your contract. </li></ul>
    24. 24. Any Questions? <ul><li>Do you have any questions about the material we covered so far? </li></ul><ul><li>Let ’s take 10 minutes to answer any questions you have. </li></ul>
    25. 25. Other sources of funds: IRA Money <ul><li>You can invest your IRA funds in real estate and protect your profit from taxes. </li></ul><ul><li>It ’s simple and easy. </li></ul><ul><li>A financial institution that offers this program is located in Irvine, CA. Entrust Group , Irvine, (949) 788-2970 </li></ul>
    26. 26. You ’re in Control <ul><li>Visit an IRA custodian who handles real restate investments of IRA funds. </li></ul><ul><ul><li>Entrust Group , Irvine, (949) 788-2970. </li></ul></ul><ul><li>You can roll over IRA funds to Escrow to invest in real estate. </li></ul><ul><li>You Earn 10-12%. </li></ul><ul><li>When the house sells (closes escrow), your funds are transferred directly back to your IRA account. </li></ul>
    27. 27. Do you have a Whole Life Insurance Policy? <ul><li>Borrow Your Cash Value , which is now earning low CD rates of return. </li></ul><ul><li>Invest the funds with Ultimate Venture LLC to buy real estate with us. </li></ul><ul><li>Earn 10-12% on your investment. </li></ul>
    28. 28. Our Competitive Advantage <ul><li>Buying with cash . </li></ul><ul><li>Buying REO ’s directly from banks . </li></ul><ul><li>Buying Foreclosures at trustee sales . </li></ul><ul><li>Buying in working class neighborhoods where the residents have jobs. </li></ul><ul><li>Using quality materials, such as granite , resulting in “ like-new ” homes. </li></ul><ul><li>Putting “ For Sale By Owner ” signs up as soon as the front yard is presentable. </li></ul><ul><li>We pay neighbors an incentive bonus for referring potential buyers. </li></ul>
    29. 29. Who Sells Us Houses? <ul><li>Banks </li></ul><ul><li>Auctions – at court house steps. </li></ul><ul><li>Private Individuals </li></ul><ul><li>REO* Listing Agents </li></ul><ul><li>Realtors *REO = Real estate owned by a bank. </li></ul>
    30. 30. Why San Diego? <ul><li>Best for entry-level homes because of the increasing Hispanic population. </li></ul><ul><li>One of the “ten best places to live” in California. </li></ul><ul><li>Perfect weather year-round. </li></ul>
    31. 31. Company Growth Plans <ul><li>Purchase 3-4 homes a month. </li></ul><ul><li>Expand into multi-family units and small apartment buildings. </li></ul><ul><li>Offer Lease Options or Rent to Own, and rental homes. </li></ul><ul><li>Lease properties for long-term cash flow. </li></ul>
    32. 32. How to Find Us <ul><li>Location: </li></ul><ul><ul><li>2400 Via Mariposa West, Suite 1C </li></ul></ul><ul><ul><li>Laguna Woods, CA 92637 </li></ul></ul><ul><ul><li>Phone (949) 340-0290 </li></ul></ul><ul><ul><li>Fax (949) 340-2516 </li></ul></ul><ul><ul><li>Email: [email_address] </li></ul></ul><ul><ul><li>Website: </li></ul></ul><ul><ul><li>We live right here in the Village. </li></ul></ul>
    33. 33. Houses Purchased <ul><li>Three of our 30 projects are included in your investor package. </li></ul><ul><li>The pages include financial information, such as purchase, rehab, and sale prices. </li></ul>
    34. 34. Next Step <ul><li>Fill out the “I’m Interested” form and leave it with us. </li></ul><ul><li>You will be placed on our preferred list and we will call you as soon as an investment opportunity arises. </li></ul><ul><li>Thank you. We look forward to investing with you. </li></ul>
    35. 35. I am Interested! <ul><li>YES! I would like to participate. </li></ul><ul><li>Name _______________________ </li></ul><ul><li>Address ______________________ </li></ul><ul><li>City _________________________ </li></ul><ul><li>Phone _______________________ </li></ul><ul><li>Email ________________________ </li></ul>