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VestCap Trust Deed Investing Overview

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  • Thank yo for joining us on todays presentation “Trust Deed Investments” My name is ss ceo of Vestcap
  • The opportunity for private equity has always been there competing against wall street for loans. Wall street is gone, with no signs of revival in the near feature as the secondary markets are still frozen. This of course is extending into the commercial market as well and that is only begining here in CA, CRE will be going through a very similar reset over the next few years and we are positioned well for it.
  • VestCap Presentation

    1. 1. Investing in High YieldTrust Deed Investments<br />Presented by Scott Stockdale<br />CEO VestCap<br />
    2. 2. Today’s Discussion<br /><ul><li>Introduction to Private Lending
    3. 3. Who is VestCap?
    4. 4. What Loan Types do We Offer?
    5. 5. Borrower Type
    6. 6. The Opportunity
    7. 7. Benefits of Private Lending
    8. 8. The Investment Cycle
    9. 9. How to Invest in High Yield Trust Deeds
    10. 10. Ways to Participate: Direct Loans vs. Being a Sponsor
    11. 11. Key Success Factors to Secure Your Investment</li></li></ul><li>Who is VestCap?<br />VC is a Collaborative Effort of Senior Mortgage Professionals Coming Together to Create Much Needed Mortgage Products and Provide Liquidity to Investors Through Private Equity. <br />Secure. VC’s Underwriting Team Was Assembled From Both HSBC & Wells Fargo Mortgage Divisions.<br />Local. VC Only Lends on California Real Estate.<br />Licensed by the California Department of Real Estate.<br />
    12. 12. Private Equity Loan Types<br />All First Position Trust Deeds <br />Short-Term Bridge Loans Ranging 6-24 Months.<br />VC Only Lends on Commercial and Non-Owner Occupied Investment Properties.<br />Rehab “ARV” Loans that Finance the Acquisition and Repair of a Property, Similar to the FHA203K.<br />Low Loan to Value 65% Maximum Exposure. <br />Security, the Trust Deed Beneficiary is Recorded on Title of Real Property . <br />
    13. 13. Opportunity in Any Cycle<br />Banks Not Lending = Excellent Returns<br />Many Investors Can Not Qualify For a Loan Regardless of How Much Money They Have to Put Down. <br />Real Estate Profits Always on the Buy Side<br />Lots of Motivated Sellers = Heavily Discounted Prices<br />Many Home Owners are Opting to Foreclose or Short Sale, Creating a New Lending Cycle Over The Next 5 -7 Years. <br />Poor Credit Equals Equity Lending, High Down Payments and Rates.<br />
    14. 14. Who Will Pay Rates of 12-16%<br /><ul><li>Investors
    15. 15. Why
    16. 16. Short-Term Borrowers are Not Rate Sensitive
    17. 17. Speed, Faster Closings Get the Deal, and For Less
    18. 18. Cost of Funds are Small in Relation to Total Project Revenue
    19. 19. Lack of Liquidity, Investor Loans Rely on the Secondary Market. There is None…
    20. 20. Many Investors Have No Alternatives</li></li></ul><li>Investor Finds a Fixer<br /><ul><li>Purchase Price is $450,000
    21. 21. Repairs/ Rehabilitation $60,000
    22. 22. Soft Cost Closing & Debt Svc $35,700
    23. 23. Total Cost $545,700
    24. 24. Quick Sale Value $625,000
    25. 25. Gross Loan/ 65% Max $406.000
    26. 26. Investors Own Funds of $139,700
    27. 27. Soft Cost Sales/ 4% $25,000
    28. 28. Net to Investor $54,300 </li></ul>Creating a Return of 39% to the Investor<br />
    29. 29. Benefits of Private Lending<br /><ul><li>Provides Monthly Cash Flow
    30. 30. Qualifies for Self-Directed IRA’s
    31. 31. Earn High Returns
    32. 32. Typically 12%-16%
    33. 33. Real Estate Secured
    34. 34. Low Loan to Completed Value <65%
    35. 35. Quick Portfolio Turn Over
    36. 36. Minimizes Market Risk
    37. 37. Minimizes Borrower Risk</li></li></ul><li>Investment Cycle<br />
    38. 38. Ways to Participate<br />You Can Provide Direct Loans<br />Pros: You Have More Control of What You Review<br />Cons: Requires Direct Origination, Underwriting and Back Office Support Cost.<br />Usury Limits<br />You Can Sponsor a Broker Like VestCap<br />Pros: Expertise in Origination, Underwriting & Portfolio Management. We Work For You.<br />Cons: Passive Real Estate Investing<br />
    39. 39. Keys to Success<br />Property Value is the Key. You are Lending on the Asset <br />Appraisal or Comparative Market Analysis “CMA”<br />Underwriting and Due Diligence<br />Borrowers Ability to Service the Debt<br />Know the Borrowers Exit Strategy, Refinance or Resale. If Refi, be Sure the Borrower Will Qualify for the Take Out Loan.<br />
    40. 40. What Makes VC Different?<br /><ul><li>Safe. You Maintain Complete Funds Control
    41. 41. Regardless, Where the Funds Come From VestCap Offers Self-Directed LLC Accounts You Control.
    42. 42. Solid. Our Teams Expertise and Ideology
    43. 43. We Know California Real Estate and Lending
    44. 44. Secure.
    45. 45. Your Investment is Secured by a Promissory Note and Deed of Trust Recorded on Title of Real Property in California.</li></li></ul><li>Thank You For Attending<br />To Learn More About <br />Trust Deed Investments<br />Please Contact Scott Stockdale <br />949.644.8700 x804<br />sstockdale@vestcap.net<br />
    46. 46. 620 Newport Center Dr. Main: 949.644.8700Suite 1100 DRE# 186592Newport Beach,CA 92660 www.VestCap.net<br />VestCap<br />

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