Private Mortgage Lending How You Can Securely Earn

Double-Digit Interest Rate

What is a Private Mortgage Loan?

How Does Private Mortgage Loan Work?

Benefits of a Private Mortgage Loan?

How Do I Get Paid Back? 44

33

22

11

• Mortgage loan funded by– Private Individuals– Retirement Funds

• Produces predictable income stream to Private Lender

• Mortgage Lien provides security, protection and recourse

What is a Private Mortgage Loan?11

Self Directed

IRA

401K Plan

Profit Sharing

Plan

Keogh Plan

You Can Invest with your IRA!

• Income is Tax Deferred or Tax Free• Use 3rd Party Custodian (Equity Trust)

We Buy Ugly Houses

We Borrow Money From You

You Earn Double Digit Interest

Text 3

SimplePlan

How Does Private Mortgage Loan Work? 22

SavingsAccount How Does Bank

Make Money?

CertificateOf

Deposit

MoneyMarketFund

You Deposit Your Money in Bank

You Get Low Interest Rate

HomeLoans How Does Bank

Make Money?

PersonalLoans

AutoLoans

Loans Your Money to Others

Bank Gets Higher

Interest Rate

RehabCosts You Are a

Private Bank!

Buy UglyHouse

PurchasePrice

You Make Loan to Us

You Earn Double Digit Interest Rate

How it Works

We RehabHouse

We RehabHouse

We BuyHouse

We BuyHouse

YouProvide

Financing

YouProvide

Financing

DocumentsSecureLoan

DocumentsSecureLoan

We SellHouse

We SellHouse

You GetPrincipal+ Interest

You GetPrincipal+ Interest

Market Value of House

Loan

(70% LTV)

Loan Origination

Fee

Interest Earned

(10%)

Total Income Earned

$142,857 $100,000 $500 $4,166 $4,666

• Proposed loan: secured by 1st mortgage on a single-family home

• Interest Rate: 10% calculated on the outstanding loan balance

• Loan Origination Fee: Service charge by Lender for making the loan.

• Investor takes 150 days to fix-up and resell the house.

Sample – How Private Mortgage Program Can Work For You

• 1st loan paid off after 5 months and you make a 2nd loan to us.

• You earn another $4,666 in interest & loan origination fee on 5 month loan.

• 2nd loan paid off and you make a 3rd loan to us.

• You earn another $2,167 in interest & loan origination fee for the remaining 2 months.

Sample – How Private Mortgage Program Can Work For You

Total income earned for the year is $11,499.

Potential Earnings with Certificate of Deposit

Certificate of

Deposit

Annual Interest

Rate

Total Interest Earned

$100,000 3% $3,000

Earning Comparison – Private Lending vs. Certificate of Deposit

Private Mortgage Lending

Certificate of

Deposit

Difference in Earning Potential

$11,499 $3,000 $8,499

Private Lending is superior alternative for getting a better return on your investment.

Higher Interest Rates

Title Insurance

Steady Income Stream

Benefits of a Private Mortgage Loan?33

Collateral Provides Safety Net

Short Term Loan Less Risk

Principal Is Secure

Benefits of a Private Mortgage Loan?33

Monthly or Quarterly Interest Paid as Required. Otherwise Total Interest Income Paid at Closing.

Entire Principal due on Loan Paid at End of Mortgage Term or When House is Sold

How Do I Get Paid Back? 44

Interest Payment Schedule

Monthly Payments

Lump Sum at

Closing

Quarterly Payments

Predictable Income Stream to

Private Lender

Does a Private Loan Sound Right For You?