1. Private Lending
for
Higher Profits
Southeast residential
partners

2. Notice
Please carefully consider the investment objectives, risks,
costs and associated expenses before investing. Real estate
investments are not guaranteed or insured. Past
performance is not a guarantee of future performance.
Please ask questions and ask for more information before
you consider any investment.

3. Private Lending for
Higher Profits
 How
much are you currently earning
on your investments?

CDs, Stocks, Mutual Funds, Savings,
IRAs, 401K accounts
 Are
you consistently earning 10%?
 Do you want to have more control
and safely increase your return on
investment?

4. Recent Market History…
 Stock
Market
 Interest rates
 Corporate fraud
 Accounting fraud
 Securities fraud
 World events

5. Real Estate…
 Slow,
steady appreciation
 Tangible asset
 Everyone needs shelter
 Tax benefits
 The American Dream

6. Who We Are…
 We
are a local Real Estate Investment
Company
 We are affiliated with a group of
investors that buys and sells several
houses each month
 We work with Private Lenders to
finance many of the houses we buy

7. What We Do…
 We
buy pre-foreclosure and
distressed houses, usually in nice
neighborhoods
 We buy houses from sellers who need
to sell quickly or who need debt relief
 We renovate and then lease or sell the
property

8. What is Private Lending?
 We
borrow funds from private
individuals for acquisition, repair,
holding and selling costs
 In
exchange, our lenders safely earn a
higher than average return on an
investment secured by real estate

9. Why Not Use Banks?
 Credit
is tight
 Banks move slowly

Our sellers need to move quickly
 This

is a very competitive market
Access to cash allows us to buy quickly
and at a discount
 Banks
will not lend money in certain
situations

e.g. No carpet or no furnace = No Loan

10. Let’s walk through an example
You have
money to lend
(self-directed IRA,
old 401K,
CD/Savings)
We locate a
house to buy
and provide you
with details to
evaluate
At a formal closing,
you receive four
documents to secure
your investment
We purchase and
renovate the house
We pay off
your loan
including
Interest earned
L
SO
D
We sell or
refinance
the house
You earn 10%
simple interest

11. Example:
$15,000 Loan
Rate
Earnings
2.0%
10.0%
12 Month
$ 300
$1,500
You make as much in ONE year at
10% as you do in FIVE years at 2%

12. Example:
Power of Compounding
$15,000 Loaned at 2%
Year
Principle
Rate
Interest
$15,000 Loaned at 10%
Total
Principle
Rate
Interest
Total
1
15000.00
2%
300.00
15300.00
15000.00
10%
1500.00
16500.00
2
15300.00
2%
306.00
15606.00
16500.00
10%
1650.00
18150.00
3
15606.00
2%
312.12
15918.12
18150.00
10%
1815.00
19965.00
4
15918.12
2%
318.36
16236.48
19965.00
10%
1996.50
21961.50
5
16236.48
2%
324.73
16561.21
21961.50
10%
2196.15
24157.65
6
16561.21
2%
331.22
16892.44
24157.65
10%
2415.77
26573.42
$9680.98
Reinvest the principle and
interest each year and you earn
over $9600 more over 6 years

13. Example: $15,000 Loan
Dollars
Growth on $15,000 Loan
30000.00
25000.00
20000.00
15000.00
10000.00
5000.00
0.00
2%
10%
1
2
3
4
Years
5
6

14. How is your loan secured?
 Four
Documents
Security Deed or Mortgage
 Promissory Note
 Lender’sTitle Insurance
 Hazard Insurance


15. Additional security…
 We
will not over-leverage property
 Maximum 80% Loan to Value (LTV)
Helps protect your investment
 Based on after-repaired-value (ARV) and
comparable sales

irs
pa
Re
bl
ra
pa
om
C
le s
Sa
e

16. Do you have an old
401K or IRA?
 We
can help you earn TAX FREE retirement
income using self-directed IRA Accounts that
permit you to make high yield loans secured
by real estate
 Rollover your old 401K or IRA to a custodian
that allows investment in Real Estate
 Custodians - examples



Equity Trust
Entrust Group
Pensco Trust Company

17. Do you have an old 401K or
IRA? (continued…)
 Minimal

account cost
Fees comparable to other custodians
 Takes
about 10 days for transfer
 Paperwork is online or we can handle transfer

Direct transfer, so no tax impact
 You
can invest IRA, Roth IRA, Simple IRA and
Simplified Employee Pension (SEP) Assets

18. What if you need to get your
money back quickly?
 Term

Should fit your investment strategy
 Most

is negotiable
IRA holders invest for longer term
24-36 months
 We
will match an investment to your needs
 If you need money back quickly?
Give us a few weeks to replace your
investment with another lender
 There is no early withdrawal penalty


19. Private lender money at work…
Owner Finance using
Existing Financing
Before
After

20. Private lender money at work…
Rehab with
Private Financing
Before
After

21. Private Financing Breakdown
 After
Repair Value
 Purchase Price
 Amount to Seller
 Amount Borrowed
 Includes
$190,000
$120,000 (Subject To)
$ 2,000
$ 23,650
 Acquisition/Reinstatement
costs
 Repair
Costs
 Holding Costs
 Marketing Costs
 Terms:
10% Payable upon sale of property

22. Private Financing Breakdown

23. Private Financing Breakdown
Sell in 6 months for net of
Repayment of loan
$23,641 + 1,182 =
Net Profit
$160,659
$ 24,823
$ 39,477

24. How do I get started?
 You
can start earning 10% today
 Set up a self-directed IRA if you do not
have one already – ask us about some
local companies
 Sign up to receive our private lending
opportunities (on the right)
 Let us know how much you would like to
lend and we will match you with an
appropriate property

25. Thank you!
The Southeast Residential Partners Team