how to become the bank and collect "mailbox money"

How to Become the Bank & Collect Mailbox Money

Rental Property OwnerPrivate Lender

Real Estate Broker

Patrick Prunty

BRE 01949337 - NMLS 1205733

Veteran of 13 Years withMarshall Reddick Real Estate

San Jose Bay Area Investors

In 2016 make it a goal to diversify your portfolio

with a more passive investment:

Become a Lender!

How do you actually make the investment?

YOU BECOME THE BANK!

1.  PURCHASE MONEY LOAN

2.  BUY AN EXISTING LOAN IN THE SECONDARY MARKET

3.  REFINANCE/CASH-OUT

Not a Syndication

As Investors, we’re Concerned with What?

1. Protecting Principal 2. Balancing Risk vs Desired Return

3. Diversification

Our program covers all 3 concerns!

While every investment has risk, our program

minimizes risk.

These loans are ideal for what?

Buy-and-Hold Rental Property

Conventional vs Private Borrowers should always use conventional financing when possible…

…only use private financing when necessary.

Question: When would a borrower need to use private financing?

1)  Non-Recourse Loan (Self-Directed Retirement Borrowers)

2)  If you have more than 10 mortgaged properties 3)  Loan amounts of less than $50,000

Buy & Hold Asset Based Lending

Marshall Reddick Real Estate : BRE 01904891 - NMLS 1306115

3 Loan Programs Available

15 Year Fixed = 7.0%

30 Year Amortization w/Balloon = 7.5%

30 Year Fixed = 8.5%


All 3 Loan Programs Require

Minimum 40% Down

Subject Property Must Cash-Flow (including Maintenance & Vacancy)

3 Year Interest Guaranty

Escrow & Title Insurance

Homeowners Insurance

Marshall Reddick Approval


Comparison

Single Family Rental w/Leverage

MONTHLY CASH FLOW = $150

Single Family Rental w/Cash

MONTHLY CASH FLOW = $417

45% LTV Private Loan @ 7.5%

MONTHLY LOAN PAYMENT = $628

$199,500.0045.00%7.50%360

$89,775.00$627.72

$19,917.45Balloon Payment (Month 120) $78,547.92

Month Payment Interest Principal Balance Cumulative Interest1 $627.72 $561.09 $66.63 $89,708.37 $561.092 $627.72 $560.68 $67.04 $89,641.33 $1,121.773 $627.72 $560.26 $67.46 $89,573.87 $1,682.034 $627.72 $559.84 $67.88 $89,505.99 $2,241.875 $627.72 $559.41 $68.31 $89,437.68 $2,801.286 $627.72 $558.99 $68.73 $89,368.95 $3,360.267 $627.72 $558.56 $69.16 $89,299.78 $3,918.828 $627.72 $558.12 $69.60 $89,230.18 $4,476.949 $627.72 $557.69 $70.03 $89,160.15 $5,034.6310 $627.72 $557.25 $70.47 $89,089.68 $5,591.8811 $627.72 $556.81 $70.91 $89,018.78 $6,148.6912 $627.72 $556.37 $71.35 $88,947.42 $6,705.0613 $627.72 $555.92 $71.80 $88,875.62 $7,260.9814 $627.72 $555.47 $72.25 $88,803.38 $7,816.4615 $627.72 $555.02 $72.70 $88,730.68 $8,371.4816 $627.72 $554.57 $73.15 $88,657.53 $8,926.0417 $627.72 $554.11 $73.61 $88,583.92 $9,480.1518 $627.72 $553.65 $74.07 $88,509.85 $10,033.8019 $627.72 $553.19 $74.53 $88,435.31 $10,586.9920 $627.72 $552.72 $75.00 $88,360.31 $11,139.7121 $627.72 $552.25 $75.47 $88,284.84 $11,691.9622 $627.72 $551.78 $75.94 $88,208.91 $12,243.7423 $627.72 $551.31 $76.41 $88,132.49 $12,795.0524 $627.72 $550.83 $76.89 $88,055.60 $13,345.8825 $627.72 $550.35 $77.37 $87,978.23 $13,896.2226 $627.72 $549.86 $77.86 $87,900.37 $14,446.0927 $627.72 $549.38 $78.34 $87,822.03 $14,995.4628 $627.72 $548.89 $78.83 $87,743.20 $15,544.3529 $627.72 $548.39 $79.32 $87,663.87 $16,092.7530 $627.72 $547.90 $79.82 $87,584.05 $16,640.6531 $627.72 $547.40 $80.32 $87,503.73 $17,188.0532 $627.72 $546.90 $80.82 $87,422.91 $17,734.9433 $627.72 $546.39 $81.33 $87,341.58 $18,281.3434 $627.72 $545.88 $81.83 $87,259.75 $18,827.2235 $627.72 $545.37 $82.35 $87,177.40 $19,372.6036 $627.72 $544.86 $82.86 $87,094.54 $19,917.45

First Mortgage/Loan AmountMonthly Payment

Interest Guaranty (Month 36)

Purchase PriceLoan-‐to-‐ValueInterest Rate

Amortization Term (Months)


MONTHLY LOAN PAYMENT = $450

$97,500.0060.00%8.50%360

$58,500.00$449.81

$14,745.88

Month Payment Interest Principal Balance Cumulative Interest1 $449.81 $414.38 $35.44 $58,464.56 $414.382 $449.81 $414.12 $35.69 $58,428.87 $828.503 $449.81 $413.87 $35.94 $58,392.93 $1,242.374 $449.81 $413.62 $36.20 $58,356.73 $1,655.995 $449.81 $413.36 $36.45 $58,320.27 $2,069.356 $449.81 $413.10 $36.71 $58,283.56 $2,482.457 $449.81 $412.84 $36.97 $58,246.59 $2,895.298 $449.81 $412.58 $37.23 $58,209.36 $3,307.879 $449.81 $412.32 $37.50 $58,171.86 $3,720.1910 $449.81 $412.05 $37.76 $58,134.09 $4,132.2411 $449.81 $411.78 $38.03 $58,096.06 $4,544.0212 $449.81 $411.51 $38.30 $58,057.76 $4,955.5313 $449.81 $411.24 $38.57 $58,019.19 $5,366.7814 $449.81 $410.97 $38.85 $57,980.34 $5,777.7515 $449.81 $410.69 $39.12 $57,941.22 $6,188.4416 $449.81 $410.42 $39.40 $57,901.83 $6,598.8617 $449.81 $410.14 $39.68 $57,862.15 $7,009.0018 $449.81 $409.86 $39.96 $57,822.19 $7,418.8519 $449.81 $409.57 $40.24 $57,781.95 $7,828.4320 $449.81 $409.29 $40.53 $57,741.43 $8,237.7221 $449.81 $409.00 $40.81 $57,700.61 $8,646.7222 $449.81 $408.71 $41.10 $57,659.51 $9,055.4323 $449.81 $408.42 $41.39 $57,618.12 $9,463.8524 $449.81 $408.13 $41.69 $57,576.43 $9,871.9825 $449.81 $407.83 $41.98 $57,534.45 $10,279.8126 $449.81 $407.54 $42.28 $57,492.17 $10,687.3527 $449.81 $407.24 $42.58 $57,449.60 $11,094.5828 $449.81 $406.93 $42.88 $57,406.72 $11,501.5229 $449.81 $406.63 $43.18 $57,363.53 $11,908.1530 $449.81 $406.33 $43.49 $57,320.04 $12,314.4731 $449.81 $406.02 $43.80 $57,276.25 $12,720.4932 $449.81 $405.71 $44.11 $57,232.14 $13,126.2033 $449.81 $405.39 $44.42 $57,187.72 $13,531.5934 $449.81 $405.08 $44.73 $57,142.98 $13,936.6735 $449.81 $404.76 $45.05 $57,097.93 $14,341.4436 $449.81 $404.44 $45.37 $57,052.56 $14,745.88

First Mortgage/Loan AmountMonthly Payment

Interest Guaranty (Month 36)

Purchase PriceLoan-‐to-‐ValueInterest Rate

Amortization Term (Months)

Ø  Invest $58,490

Ø Collect $150 Per Month

Ø Vacancy, Maintenance & Property Management

Single Family Rental w/Leverage



Ø Vacancy, Maintenance & Property Management

Single Family Rental w/Cash



NO: Ø Vacancy, Maintenance & Property Management


Turn your retirement account into a diversified, cash generating machine!

Property Address Loan Amount Home Price LTV Rate Term Payment6709 Day Dr, Fort Worth, TX 76132 $85,000 $170,000 50% 7.5% 10 $594

6215 Palmer Park Ct, Houston, TX 77086 $71,999 $119,999 60% 8.5% 30 $55419305 Pathway Pointe, Noblesville, IN 46062 $60,075 $133,500 45% 7.0% 15 $6601138 E Lasalle Ave, South Bend, IN 46617 $27,500 $55,000 50% 7.0% 15 $247

$244,574 $478,499 $2,055

1.  Have an initial call with Marshall Reddick to express interest.

2.  We evaluate and present opportunities that fit your criteria.

3.  You review and ask questions…then commit or pass.

Ge_ing Started

What Happens Next?

YOU COLLECT MAILBOX MONEY!

How do we Minimize the Risk? Lend only on Marshall Reddick Approved Property

in Marshall Reddick Approved Markets to Marshall Reddick Borrowers.

60% Loan-to-Value Maximum ü Appraisal ü  Subject Property Must Cash-Flow

Loan Servicing ü  Superior Loan Servicing ü Note Servicing Center

Question:

How does Marshall Reddick Real Estate

make money?

Answer: We make a Loan Fee,

commonly referred to as Points, for facilitating each transaction.

What is the role of Marshall Reddick?

1)  Provide private lending opportunities

2)  Communicate clearly with both Lender & Borrower

3)  Coordinate with Realtors, Inspector and Appraiser

4)  Coordinate with Escrow, Attorney and/or Title Co

5)  Coordinate in the Event of Default

Question:

What is the absolute worst case scenario?

Answer: You end up owning the property.

Interested?

Need More Information?

Let’s Chat!

Patrick Prunty (949) 885-8173

[email protected]