peak properties private lending
TRANSCRIPT
Peak Properties, LLC Consulting Services for the Private Lender
Are You Earning10-15% On Your Investments?
Secure Investment
Hassle Free Investment
High Yield Investment
Private Investing in Quick Turn Real Estate
We are so glad you are here and this presentation will help us get acquainted.
I really want you to understand what My Company has to offer. This is a guide to show you how to use your Investing funds including your IRA, 401K, Self Directed Pension Plan to start earning high yields on your investments TODAY!!!!
Welcome
• Private Lender Program • Company Overview
−History −Dream Team
Agenda
What is a Private Lender?
A person who loans money to a professional real estate investor for short term loans
Lender receives very high interest rates for their loans.
Lender is secured by a mortgage on the property.
Summary
What is this Quick Turn Real Estate all About?
• Real Estate Investors buy distressed houses including foreclosures, bank owned houses and other unwanted houses.
• Investors repair and renovate them and quickly resell the houses for huge profits.
What are the Advantages to the Lender ?
• Lender receives high double digit return on investment
• Lender is not responsible for any work or repairs
• Lender enjoys a passive hands off investment
Why Real Estate Investors Need Private Lenders
Not every seller can finance their property for the investor. So Cash is Needed
Real Estate projects are cash intensive on investors.
Cash is King in the quick turn real estate market.
Network and Team Members
• Real Estate Agent - Knowledgeable of Market
• Appraiser- Safety Cushion
• Attorney - Understands Distressed Real Estate
• Home Inspector - Safety Cushion
• Insurance Agent- Proper Vacant House Insurance
• Contractor – Licensed and Insured
How Private Lenders Greatly Help Real Estate Investors.
• REI (real estate investors) always will be able to offer Cash and Quick Closings!
• REI don’t lose deals because of financing
• REI will get these loans with no loan applications.
• REI will save thousands in fees and points. Thus giving private lenders huge returns.
Why are There More Private Lenders Entering This Investment Area?
• Many got burned by the ever swinging and volatile Stock Market
• Most safe, fixed rate investments are very slow yielding.
• People are just now learning about the safe huge returns that quick turn real estate can offer them and how accessible it is all over the country.
Why Private Lending is the Best and Safest Investment Offering the Highest Returns
• Returns are extremely high (10-15%) • Investments are short to medium term for
quick liquidity. 4-6 months average time • Investment is secured-1st lien position on
property • Private Lending is a hands off investment • Liability is extremely low
Where do Private Lenders Get Their Investment Funds?
• Savings Account that presently are earning 1-2%
• Equity in their homes or other properties. • Funds from stale stocks earning no returns. • Self Directed Retirement Accounts. • Self Directed IRA • Self Directed 401K PLANS • Self Directed PENSION FUNDS
What Documents are Needed to Secure the Lenders Investment?
• Lenders Agreement with Escrow Agent – Attorney or Title Company
• Title Insurance Policy • Homeowners Liability & Fire Insurance Policy • 1st Mortgage and Note (Deed of Trust) • Appraisal or CMA of ARV (after repaired
value)
How Does Your Bank Make Money Today?
• They take in money on savings account and CD’s. (You)
• They then loan the money out at a higher rate of interest to other people and businesses.
Private Lenders Can Now….
Become….The Bank!
Private Lender Program Overview
RE Investors buy & sell houses. To buy houses, they prefer to borrow
money from private individuals. You receive 10% -15% to use your
money. It is really a very simple plan.
Think of it like you would with a bank CD. -But with 5-10 Times Higher Return!
Private Lender Program How it Works
1) Investors locate a property we want to buy.
2) They borrow from you to
purchase and repair the property.
3) They have a formal closing and you get a
mortgage on the home with other
important documents
4.) When they sell the house you get your
principle and interest back.
Availability of cash allows them to buy at a huge discount!
START: Investor negotiates a property for a discount
They send out Lender Opportunity Package to request funding for the deal. ** includes appraisal and all the deal details **
A lender is selected and provides a Letter Of Commitment (LOC) to fund the project according to the contract closing date.
The contract is sent to the attorney’s office, title search is ordered, and they will start preparing the rest of the documents.
KEY DOCUMENTS CREATED FOR YOU AT CLOSING AS A
LENDER: Promissory Note Mortgage Title Insurance Policy Fire / Hazard Insurance Flood Search Termite Report Property Scan for Underground Tanks
FINISH: Lender provides certified funds to attorney All documents are signed transaction is complete
1
2
3
4
5
How it works 6 House Sells
Lender is paid principle and interest at closing directly from closing agent.- Transactions Completed
Private Lender Program How are Payments Made To You?
1) Either they will make monthly payments a) This can be draining on investor b) Usually investor will want lower interest
rate Or…Preferred Method
2) The interest accrues until the house is sold and you get (1) check for principle and interest.
3) Many times Lender can receive a full 6 month payment on early sales!
Investor’s Mortgage They offer you 10% simple interest. That’s
the least you can make. Note For up to a 1 year period Average time….6 months Variations can apply after term expires
6 Month Minimum Interest Common
Private Lender Program $100,000 Loan Example
$100,000 x 10% = $10,000 APR. A Bank CD @ 1.5% pays $1,500 per
year.
That’s a difference of
$8,500 per year!!!
Investors Target Property
• Purchase Price $150,000 (275K ARV).
• Rehab Cost $40,000. • Loan: $180,000 X 10% =
$1500/month.
If Six Month Minimum Enforced-
Return= $9,000= 10% APR
Documents Securing Your Investment Promissory Note. Mortgage. Hazard Insurance Policy. Title Insurance Appraisal/CMA
Lenders have NO expense
All costs paid from closing.
Your BIGGEST Concern? Protection of Principle!
• #1 Rule: Money borrowed is no higher that 65-70% loan-to-value after being renovated.
• This insures a 30-35% margin for closing costs and PROFIT!
Don’t Violate the 70% LTV
70% Loan to Value Example
Never Violate This Rule
$100,000 After Repaired Value
$70,000 Max Loan
Do You Have Money in IRA’s, 401K Pension Plans
You can self direct your IRA (Traditional/Roth) or pension plan.
Your returns stay tax deferred or tax free. It’s simple, easy and commonly used.
Equity in Home or Investment Property?
Use equity draw for loan. Usually very small percentage Earn difference on money not
being used.
People Who Sell Investors Houses
Banks
Foreclosures
Short Sales
Private Individuals
Probate
Pre-foreclosures
Distressed Homeowners
Vacant - out of state owners
Realtors
Short Sale/pre
foreclosures
Handyman Specials
Divorce/Sickness/Death
People Who/Why Buy Our Houses
Achieve the American Dream of home ownership. First time buyers.
Many could not buy without our special programs and willingness to go the extra mile / Concessions.
Move in Condition New and Modern
How Can Investors Buy Houses So Far Below Market Value?
• Their specialty is distressed properties that usually need renovation.
• They know where to look, what to buy, what not to buy and how to renovate.
• They create value by taking ugly, vacant homes that are eye sores and putting them back in saleable retail condition after renovation.
What Happens to My Investment……… if Investor Dies ?
• Business is structured to sell properties and pay you off. Your loan is still secured by the property.
• The property will be sold and your principle and interest will be paid as agreed.
•LTV is low enough for any other investor to buy it and finish the property if you wish.
Company Story • Peak Properties, LLC a serious real estate
investment firm located right in our area. • Our goal is to continue to provide
affordable housing to mainly 1st time homeowners.
• We are experts at analyzing, buying, renovating and selling residential properties.
• We acquire, rehab, and sell for a quick profit consisting of an average of 4 to 6 month turn around time.
• We offer consulting and partnerships to lenders entering this field of investing.
Competitive Advantage • Our competitive advantage is speed
to purchase a property and knowledge of creative real estate techniques.
• We never overpay or over leverage our properties (i.e. 70% LTV)
• Aggressive negotiations. • Expert Rehab knowledge/cost to
rehab. • Solid Team to Perform all Related
Tasks.
How To Find Us • Company Name: Peak Properties, LLC • Mailing Address: 319 Queen Anne
Road Teaneck, NJ 07666 • Phone: 201-836-7300 ext 101 • Web Site:
http://www.peakpropertiesllc.com • E-Mail:
Success Factors? What makes our company
unique. − Integrity, systems, speed in
buying and our knowledge of the market place.
What make our company
successful. − Teamwork, drive, focus and hard
work.
House Purchased
Before
After After
Before
After
House Purchased - Continued
Before
After
House Purchased - Continued
More Examples Purchase
Price:
$135,000 Repairs:
$47,000 Sold:
$263,000
69% LTV
More Examples Purchase
Price:
$96,000 Repairs:
$64,000 Sold:
$259,000
62% LTV
More Examples Purchase
Price:
$185,000 Repairs:
$60,000 Sold:
$350,000
69% LTV
Rehab Results: Simple and Nice
Rehab Results: Simple and Nice
The Next Step ? • By now you know
how this program works and how you can earn 10% starting today.
You have (3) options:
We hope you decide to join our
team
The Next Step ?
1) Option One - Do nothing. This isn’t for you. Can you give us names of folks that you feel it would serve.
2) Option Two - Set up a one-on-one meeting to discuss more details
3) Option Three - Fill out the interest form and leave with us. We’ll be in
touch.
Commitment Form
Name __________ Address __________ City __________
YES! I would like to get more information and get started.
New York Times Review
Thank You
Peak Properties, LLC.