Raising Private MoneyVault Club

Tonight’s Theme:

Become a Money Magnet

Tip: If on a land line, please turn OFF your cell phone or place it 10 feet away.

REMINDER: Dial in to the conference call number on your webinar dashboard.

Orientation

House Rules:– Toggle *6 on your phone to mute / unmute OR– Type in your question on the panel.– Direct Client Care questions to the office:

713-476-0102 or TheVault@fcgllc.com

Save your account questions for the office please.

Agenda

Announcement Theme Discussion Celebration Q&A & Deal Review Wrap-up

Announcements New Member Instructions

1. Read your QuickStart Guide first.

2. Access your Private Money Rolodex.

3. You should be reviewing the weekly webinar videos on the Private Money Cookbook System!!

4. You should be doing the weekly assignments assigned on the videos and slides/notes.

5. Contact the office with questions.

These resources are at www.RPMVault.com

RPMVault.com

If you have not received your log-in, contact the office.

Each week’s meeting registration is posted here. If you don’t receive an email, visit this site.

CONGRATULATIONS TO:

Dan Badinghaus – Partners for Profit Student, Provided the Deal

Daniel Yoo, Multi-Family and RPM Apprentice Student – Provided the Buyer

Objective & Expectations

Objective– Share and mastermind money resources– Share and mastermind deal structure– Vet the sources and share

Expectation:– Your participation & contribution

This session is not about finding deals but rather funding deals.

Quote of the week……

"Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and well preserved body, but rather to skid in sideways, body thoroughly used up, totally worn out and screaming "WOO HOO what a ride!"

                      

How does 'Conventional' financing differ from 'Private Money'?

Conventional

Permanent or bridge loans (amortizing or interest-only). Standard closing time frame is subject to due diligence

factors (e.g., appraisal, environmental, engineering and other 3rd party reports, title, legal). However, some lending programs may take significantly longer to close (e.g., HUD). 

Higher leverage (i.e., LTV, LTC) and lower pricing.  Funded typically by banks/institutions, insurance companies,

pension funds, and government-sponsored programs (e.g., HUD, FNMA, Freddie Mac).

How does 'Conventional' financing differ from 'Private Money'?

Private Money AKA “Hard Money”Bridge loans (interest-only). 

Expedited closing time frame subject to due diligence factors (e.g., appraisal, environmental, engineering and other 3rd party reports, title, legal). 

Lower leverage (i.e., LTV, LTC) and higher pricing.  Funded typically by wealthy individuals and private funds which are

generally less regulated then conventional lenders.  Private money is used for its funding speed which may be critical for

certain deals (e.g., 1031 exchange). Although more expensive, private debt is usually cheaper than adding an equity partner. Private money is also used for deals which carry too much risk for conventional lenders, and may require real estate collateral other than the subject property. 

Theme Discussion:Become a Money Magnet!

Predisposed– Someone who has already invested in Real

Estate Previously Seller Broker Investor 1031Exchange Client Builder Don’t ever try to “sell” someone on the attributes of real

estate investing when there are many already involved!

Theme Discussion:Become a Money Magnet!

Low Risk– Management Team Experience– Collateral Protection, %LTV– Extra Collateral Protection– 3rd Party Appraisal, Rehab Estimate, Repair– Cash-flow in Excess of Debt Service– Contingency Budgeted– Insurance Coverage – Title, Casualty, Flood, Liability, Key

Man Life, Disability, Business Income Loss Insurance

Theme Discussion:Become a Money Magnet!

CONTROL– Financial Transparency, Review of Books– Receipts & Invoices– 3rd party Inspection of Work– Controlled Release of Funds– Key Man Disability, Life Insurance– Business Income Loss Insurance– 3rd Party Escrow of Purchase Money– 1st or 2nd or Blanket Lien Foreclosure Provisions– Ability to Intercede without Foreclosure

Theme Discussion:Become a Money Magnet!

High Return– In Todays Market, High Return is relative to current market

and trends– One to two points over Prime Rate beats the current Money

Market or CD.– Relative to Low Risk and Control, High Return may not

need to be so High.– Madoff and other scandals have created “red flags” on

traditional “High Returns”. – Investors are more cautious and willing to accept lower

returns for lower risk and more control.

Celebration

Who had a breakthrough? Who accomplished a 1st? Who has a new money source? Who has vetted an existing money

source

Questions

Questions? Aha Moments?

Press *6 or enter through your Control Panel

End of this Session

Now, Go Raise Some Cash!See you next Week – April 13, 2010

Please answer the brief survey as you exit the webinar. Thank you in advance for your testimonial.