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Build Wealth Today
With Double Digit Returns,
No Commissions & Predictable Results
Investment Marketplace
What Are Your Investment Objectives?
• Security
– CDs
– Corporate Bonds
– Government Bonds
– Fixed Annuities

• Higher ret...
Bank Of America: CD Rates:
Annuity Rates:
Bond Rates:
S&P 500: Last 5 Years:
S&P 500: Last 10 Years:
Precious Metals April 2011 – April 2013
What is a Self Directed I.R.A?
• A Self Directed IRA is an IRA where the owner is
required to make their own Investment de...
$500,000 Mutual Fund Investment
• American Funds = Small Cap World
• Exp ratio = %1.09 (paid to the fund manager)
– @ 10% ...
Share Classes
• Class “A” Shares – up front commission
• Class “B” Shares – back end commission &
higher expense ratio
• C...
“LOAD” / “NO LOAD”
• Load = Commission
• No Load Fund = No Commissions
• Paying a money manager = charge a money
managemen...
Variable Annuities
• Act Very Similar A Mutual Fund
– BUT

•
•
•
•
•

Access To 40 Funds Within The Annuity
Transfer From ...
Our Mission Statement

To Provide Our Investors Double Digit
Investment Returns By Matching Our
Knowledge And Acquisition ...
Company Overview
FOM Holdings and
Investments LLC.
A real estate investment firm
created to purchase, manage and
sell sing...
One and Only Goal
To Significantly Increase The
Wealth Of Our Private Investors With
Double-digit Returns Plus
Upside Bonu...
How We Acquire Properties

• Private Individuals.
• Realtors.
• Pre-Foreclosures.
• Foreclosures & REOs.
Fall 2013 Current Project
•
•
•
•
•
•
•

4208 Sierra Vista,
Historic Phoenix
Paid = $58,000
Rehab = $32,000
Total = $90,00...
November 2012 Project
•
•
•
•
•
•
•

2721 W Villa Maria
North Phoenix
Paid = $54,500
Rehab = $22,000
Total = $76,500
Sold=...
August 2012 Project
•
•
•
•
•
•
•

10426 w Georgia
Glendale AZ
Paid = $89,900
Rehab = $6,000
Total = $95,900
Sold=
$129,90...
February 2012 Projects
•
•
•
•
•
•
•

1942 N 104th Ave
Avondale
Paid = $62,300
Rehab = $8,860
Total = $71,160
Sold=
$92,00...
June 2011 Project
•
•
•
•
•
•
•

8421 W Payson Rd
Tolleson AZ
Paid = $74,100
Rehab = $0
Total = $74,100
Sold=
$110,000
Pro...
November 2011 Project
•
•
•
•
•
•
•

21844 W Pima St
Buckeye
Paid = $79,500
Rehab = $3,350
Total = $82,850
Sold=
$104,000
...
March 2012 Project
•
•
•
•
•
•
•

10217 W FLORENCE
Tolleson AZ
Paid = $70,000
Rehab = $4,650
Total = $74,650
Sold=
$103,00...
Current 2014, Opportunities
4712 W Lindner, $20,000
Current 2014, Opportunities
5538 E Dionysus Dr, $32,600
Invest in Sunny Phoenix Arizona
• The Phoenix Metro area is made up of 1
major county, Maricopa County and is the
6th larg...
IRA Eligible
• Individual Retirement Accounts
qualify, including Roth’s.
• Allows you to self-direct your
investments.
• 3...
Security
Mortgage

Note
Private Lender
Program Overview
• We buy houses.
• We borrow money from
private lenders to fund our
deals.

• We pay 12% f...
$50,000 Investment Example
Type

Yield

12-Month
Return

Bank CD

1.5%

$750

RE Investor

12.00%

$6,000

Annual

Increas...
Investment Documents
• Promissory Note for loan
amount.
• Recorded Mortgage at
reasonable 70% L.T.V.
• Hazard Insurance
Po...
Current Investment Opportunity
4712 W. Lindner


Appraisal Value: $185,000



Loan/Investment: $141,000



Purchase Pri...
Investor Benefits
• Investor income:
– $135,500 (loan) x 22.5% = $30,555 annually.
– Monthly interest = $2,546.

• Investo...
BEFORE

AFTER
*Bonus*
• FOM Holdings and Investments LLC Private Lenders receive
12% fixed interest ~OR~ 20% of the net profits on the r...
3 Step Process
1. Set Up A IRA Acct = Equity Trust
2. Fund The Acct =
1. Rollover = from 401k or 203b
2. Transfer = from a...
R.O.I. OFFER
•
•
•
•

12% interest
~OR~
20% of the profit
Whichever is greater (If/when they fund an
entire deal).
FOM Holdings and Investments LLC
Works Hard So You Can Relax
• Locate potential properties.
• Perform property analysis an...
FOM Holdings and Investments LLC
Works Hard So You Can Relax
• Create ads and signs for
advertising available properties.
...
Program Guidelines
•
•
•
•

Each loan gets a mortgage.
$50,000 and above, you typically get a 1st mortgage.
$10,000 to $50...
Investor Payments
•

Quarterly.
~OR~

•

Annually.
~OR~

•

Interest accrues monthly – full payment of principal and
inter...
Early CD Withdrawal
• A bank’s average penalty on a $50,000 CD is
$750 (6 months interest @ 3%).
• FOM Holdings and Invest...
IRA Eligible
• Individual Retirement Accounts qualify, including Roth
IRAs.
• Allows you to self-direct your investments i...
Investor Profile
• Want to increase your R.O.I.
• Want some collateral to protect investment capital.

• Have liquid asset...
Investment Alternatives
• Transition to a secured investment.
• Collateral-based.
• Fixed returns.

• Better protection of...
What Do Smart Banks Know
About Investing? Plenty!
• Banks lend heavily in Real Estate.
• They take in money on CDs (ex. 2%...
What Does Arbitrage Mean?
The simultaneous purchase and sale of an asset in order to profit
from a difference in the price...
Building Wealth
By Becoming “The Bank”
Private Lender Program
No hassles, no fees.

Fixed double-digit returns plus bonuse...
Scenario #1:
“Short Term Double-Digit Interest”
1. Our company locates distressed properties.
2. Our company purchases the...
Private Lender
Quick-Turn Program Overview
• Private funds allow us to purchase at
a discount quickly.
• We have a formal ...
Scenario #2: “Long Term Interest”
1. Our company locates a property.
2. Our company purchases the property.
3. Private ind...
Program Guidelines
• Each loan is secured by a note.
• A mortgage is recorded in
public record to secure the
note.
• We ty...
Protection of Principal
• #1 Rule: Money borrowed
is no higher than 70% loanto-value; after repair value.
• We then build ...
70% Loan-To-Value (ARV) Rule
We Don’t Break This Rule!
100%
appraised
value

70% loan to
value
In the Event Something Happens
to a Key Owner
• FOM Holdings and Investments LLC will continue on in business.
• Single fa...
Give Yourself the Gift of Time
Your Quality of Life Is Important
Peace of mind for us in
retirement is priceless.

Thanks, Mom and
Dad, for the gift of
e...
The Next Step?
• We will answer any questions you have.
• Now that you know how you can earn double-digit
returns on your ...
FOM Holdings and Investments LLC
Private Investing
602-282-0221
andrew@fomholdings.com
www.fomholdings.com

Investing Solu...
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  1. 1. Build Wealth Today With Double Digit Returns, No Commissions & Predictable Results
  2. 2. Investment Marketplace
  3. 3. What Are Your Investment Objectives? • Security – CDs – Corporate Bonds – Government Bonds – Fixed Annuities • Higher returns – Stocks – Mutual Funds – Variable Annuities
  4. 4. Bank Of America: CD Rates:
  5. 5. Annuity Rates:
  6. 6. Bond Rates:
  7. 7. S&P 500: Last 5 Years:
  8. 8. S&P 500: Last 10 Years:
  9. 9. Precious Metals April 2011 – April 2013
  10. 10. What is a Self Directed I.R.A? • A Self Directed IRA is an IRA where the owner is required to make their own Investment decisions. • Non- Traditional Assets: Like real estate, LLC’s, oil and gas, etc • Self Directed IRA custodians (Like The iPlan Group who I use) set up real estate investments inside of an IRA. • Any 401k, IRA, ROTH IRA, SEP IRA or HSA acct owner can make investments like real estate in those accts • Sample Investments – Note (I.O.U) w/ Mortgage – Buy stock in a company
  11. 11. $500,000 Mutual Fund Investment • American Funds = Small Cap World • Exp ratio = %1.09 (paid to the fund manager) – @ 10% = $50,000 Profit / ROI – @ 8.91% = $44,550 Profit / ROI • “A” Share Commission – (paid to the financial advisor who sells this mutual fund to their client) – $500,000 = 2% (breakpoint) = $10,000 • $500,000 - $10,000 = $490,000 - $5,341 (%1.09 exp ratio) = $484,659 left (zero ROI) • $15,341 dollars in FEES for American Funds • $1,500 dollars in FEES for Equity Trust (self directed IRA)
  12. 12. Share Classes • Class “A” Shares – up front commission • Class “B” Shares – back end commission & higher expense ratio • Class “C” Shares – small annual commission & highest expense ratio
  13. 13. “LOAD” / “NO LOAD” • Load = Commission • No Load Fund = No Commissions • Paying a money manager = charge a money management fee – EX: Sell no load funds BUT charge 1% money management fee + 1% expense ratio
  14. 14. Variable Annuities • Act Very Similar A Mutual Fund – BUT • • • • • Access To 40 Funds Within The Annuity Transfer From Fund To Fund With No Expense 3% Commission Up Front AND 2% Exp Ratio Per Year Every Year
  15. 15. Our Mission Statement To Provide Our Investors Double Digit Investment Returns By Matching Our Knowledge And Acquisition Of Undervalued Real Estate Assets With Investors Looking For Investment Alternatives And Double Digit Returns.
  16. 16. Company Overview FOM Holdings and Investments LLC. A real estate investment firm created to purchase, manage and sell single, multi-family and commercial dwellings primarily in the Phoenix Arizona.
  17. 17. One and Only Goal To Significantly Increase The Wealth Of Our Private Investors With Double-digit Returns Plus Upside Bonus Potential .
  18. 18. How We Acquire Properties • Private Individuals. • Realtors. • Pre-Foreclosures. • Foreclosures & REOs.
  19. 19. Fall 2013 Current Project • • • • • • • 4208 Sierra Vista, Historic Phoenix Paid = $58,000 Rehab = $32,000 Total = $90,000 Listed = $145,900 Projected Profit = $44,428
  20. 20. November 2012 Project • • • • • • • 2721 W Villa Maria North Phoenix Paid = $54,500 Rehab = $22,000 Total = $76,500 Sold= $114,000 Profit = $31,160
  21. 21. August 2012 Project • • • • • • • 10426 w Georgia Glendale AZ Paid = $89,900 Rehab = $6,000 Total = $95,900 Sold= $129,900 Profit = $26,206 in 35 days
  22. 22. February 2012 Projects • • • • • • • 1942 N 104th Ave Avondale Paid = $62,300 Rehab = $8,860 Total = $71,160 Sold= $92,000 Profit = $15,320
  23. 23. June 2011 Project • • • • • • • 8421 W Payson Rd Tolleson AZ Paid = $74,100 Rehab = $0 Total = $74,100 Sold= $110,000 Profit = $35,900
  24. 24. November 2011 Project • • • • • • • 21844 W Pima St Buckeye Paid = $79,500 Rehab = $3,350 Total = $82,850 Sold= $104,000 Profit = $16,850
  25. 25. March 2012 Project • • • • • • • 10217 W FLORENCE Tolleson AZ Paid = $70,000 Rehab = $4,650 Total = $74,650 Sold= $103,000 Profit = $22,170
  26. 26. Current 2014, Opportunities 4712 W Lindner, $20,000
  27. 27. Current 2014, Opportunities 5538 E Dionysus Dr, $32,600
  28. 28. Invest in Sunny Phoenix Arizona • The Phoenix Metro area is made up of 1 major county, Maricopa County and is the 6th largest consumer market in the U.S.
  29. 29. IRA Eligible • Individual Retirement Accounts qualify, including Roth’s. • Allows you to self-direct your investments. • 3rd Party Administrator sends money to title agent’s escrow account. • Title agent sends all money back to 3rd Party Administrator. – Equity Trust Company. – Nation’s foremost self-directed custodian. – Premier customer service.
  30. 30. Security Mortgage Note
  31. 31. Private Lender Program Overview • We buy houses. • We borrow money from private lenders to fund our deals. • We pay 12% fixed returns ~OR~ 20% of the profit, WHICHEVER IS GREATER. • We have a formal closing and you get a mortgage on the home at a reasonable L.T.V. • Title Insurance and hazard insurance protect you. • Private funds allow us greater purchasing power
  32. 32. $50,000 Investment Example Type Yield 12-Month Return Bank CD 1.5% $750 RE Investor 12.00% $6,000 Annual Increase $5,250 In 5 years, your investment could grow to $75,000!
  33. 33. Investment Documents • Promissory Note for loan amount. • Recorded Mortgage at reasonable 70% L.T.V. • Hazard Insurance Policy, lender named as a loss payee paid for by borrower. • Title Insurance lender’s policy paid for by borrower.
  34. 34. Current Investment Opportunity 4712 W. Lindner  Appraisal Value: $185,000  Loan/Investment: $141,000  Purchase Price: $128,000  Renovation Cost: $11,000  Resale Price: $178,000  Gross Profit: $37,000 minus closing costs  Net Profit: $24,540  Interest to Private Lender: $5,640  20% of the profits =$4,908  Return of Investment: 22.55% Investor: 22.5% Return on Investment; Principal and Interest returned to Investor in 4 months
  35. 35. Investor Benefits • Investor income: – $135,500 (loan) x 22.5% = $30,555 annually. – Monthly interest = $2,546. • Investor is “THE BANK” – First lien-holder. – DUE ON SALE of the asset providing protection of principal. – No personal or property liability. – No property management.
  36. 36. BEFORE AFTER
  37. 37. *Bonus* • FOM Holdings and Investments LLC Private Lenders receive 12% fixed interest ~OR~ 20% of the net profits on the resale whichever is greater.
  38. 38. 3 Step Process 1. Set Up A IRA Acct = Equity Trust 2. Fund The Acct = 1. Rollover = from 401k or 203b 2. Transfer = from another IRA 3. Make An Investment
  39. 39. R.O.I. OFFER • • • • 12% interest ~OR~ 20% of the profit Whichever is greater (If/when they fund an entire deal).
  40. 40. FOM Holdings and Investments LLC Works Hard So You Can Relax • Locate potential properties. • Perform property analysis and due diligence. • Process and evaluate foreclosures from “Legal News.” • Monitor property’s foreclosure proceedings at courthouse and through media. • Address Realtor questions. • Interface with Equity Trust Co. • Provide presentations to investors. • • • • • • • • • Negotiate offers. Coordinate and oversee inspections. Coordinate closings. Research marketplace. Perform marketplace analysis. Develop marketing plan. Coordinate title searches. Arrange and oversee inspections. Review settlements for accuracy.
  41. 41. FOM Holdings and Investments LLC Works Hard So You Can Relax • Create ads and signs for advertising available properties. • Put out lock boxes and signs. • Obtain constant training through Phoenix Assoc. of Realtors and National Real Estate Investing Association and local AZREIA. • Manage database. • • • • • • • • • Call lenders weekly. Interface with insurance company. Schedule showings. Hold open houses. Coordinate and monitor property renovations. Negotiate with subcontractors. Monitor property renovation budgets. Negotiate with homeowners. Prospect for new clients.
  42. 42. Program Guidelines • • • • Each loan gets a mortgage. $50,000 and above, you typically get a 1st mortgage. $10,000 to $50,000, you typically get a 2nd mortgage. No bundling or combining of funds.
  43. 43. Investor Payments • Quarterly. ~OR~ • Annually. ~OR~ • Interest accrues monthly – full payment of principal and interest when property is sold. You pay no transaction fees or closing costs!
  44. 44. Early CD Withdrawal • A bank’s average penalty on a $50,000 CD is $750 (6 months interest @ 3%). • FOM Holdings and Investments LLC may pay your withdrawal penalty.
  45. 45. IRA Eligible • Individual Retirement Accounts qualify, including Roth IRAs. • Allows you to self-direct your investments in real estate. • 3rd Party Administrators. – Vantage Trust (Phoenix, Arizona)
  46. 46. Investor Profile • Want to increase your R.O.I. • Want some collateral to protect investment capital. • Have liquid assets ($50k) available to invest for 2 - 5+ year term. – Savings accounts – CDs – IRA
  47. 47. Investment Alternatives • Transition to a secured investment. • Collateral-based. • Fixed returns. • Better protection of principal.
  48. 48. What Do Smart Banks Know About Investing? Plenty! • Banks lend heavily in Real Estate. • They take in money on CDs (ex. 2%). • Then loan the money out at a higher rate of interest to other people to buy houses (ex. 5%). • This is called “Arbitrage.” You can be the bank.
  49. 49. What Does Arbitrage Mean? The simultaneous purchase and sale of an asset in order to profit from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. Arbitrage exists as a result of market inefficiencies. Read more: http://www.investopedia.com/terms/a/arbitrage.asp#ixzz1bjRmwFX4
  50. 50. Building Wealth By Becoming “The Bank” Private Lender Program No hassles, no fees. Fixed double-digit returns plus bonuses. You determine your levels of risk. Predictable Retirement Investing Made Easy
  51. 51. Scenario #1: “Short Term Double-Digit Interest” 1. Our company locates distressed properties. 2. Our company purchases the property significantly below market value. 3. Private individual lends us money via wire transfer to escrow agent. • Investor lends from account they control. • Money goes to title agent’s escrow account. 4. The private individual receives documents (note and mortgage) to secure investment at formal closing.
  52. 52. Private Lender Quick-Turn Program Overview • Private funds allow us to purchase at a discount quickly. • We have a formal closing with a HUD1 settlement statement. • Title Insurance to protect all parties. • We then quickly resell the property using 7 different strategies. • The private lender’s money is returned to them with interest and/or profits.
  53. 53. Scenario #2: “Long Term Interest” 1. Our company locates a property. 2. Our company purchases the property. 3. Private individual lends money via transfer to escrow agent. 4. They receive documents to secure investment at formal closing. 5. Our company finds a tenant/buyer. 6. Our company collects the rent from tenant buyer which covers payment to private lender plus other expenses plus monthly profit. 7. Our company writes a check for interest payment to private lender quarterly or annually.
  54. 54. Program Guidelines • Each loan is secured by a note. • A mortgage is recorded in public record to secure the note. • We typically require $60,000 $150,000 for quick-turn loans.
  55. 55. Protection of Principal • #1 Rule: Money borrowed is no higher than 70% loanto-value; after repair value. • We then build in more equity by renovating the property. • Independent appraisals done upon lender’s request. Because we don’t over-leverage the property, you get additional security.
  56. 56. 70% Loan-To-Value (ARV) Rule We Don’t Break This Rule! 100% appraised value 70% loan to value
  57. 57. In the Event Something Happens to a Key Owner • FOM Holdings and Investments LLC will continue on in business. • Single family homes are easier to sell/liquidate. • Properties can be sold if necessary, and your principal and interest will be paid. • Andrew has named private lenders as beneficiary on his life insurance policy for the amount of the mortgage.
  58. 58. Give Yourself the Gift of Time
  59. 59. Your Quality of Life Is Important Peace of mind for us in retirement is priceless. Thanks, Mom and Dad, for the gift of education. We now enjoy a more relaxed lifestyle.
  60. 60. The Next Step? • We will answer any questions you have. • Now that you know how you can earn double-digit returns on your investments… – Sign up today for a private meeting. • Also, do you know someone else who may want to earn double-digit returns? Join our team of Private Lenders
  61. 61. FOM Holdings and Investments LLC Private Investing 602-282-0221 andrew@fomholdings.com www.fomholdings.com Investing Solutions

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