private lending 5-15-11
TRANSCRIPT
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Private Lending• Secured• Hassle-Free• Superior Yields
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Too Good To Be True?• No! To borrow money from
“hard money” lenders, we have to pay
• 12.5% interest• 3.5 points up front (=3.5%)• $1,1096 processing fee.• $375 appraisal feeBorrowing from you at 10%
saves us close to 7%.
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Welcome• Our company is Ultimate
Venture LLC, founded in January 2010.
• We acquire, rehab and sell homes by buying for cash.
• The corporate partners are David Stuard and Sheila Kirkland.
• On all REO’s Banks only accept cash, no financing, only cash. This is why we ask you to join us
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Introductions• David Stuard, manager• Sheila Kirkland, partner, financial
manager• Eric Townsend, Esq., Attorney• Anne Clark, Director of Operations• Lorraine Wright, Chief Property
Analyst• James McKinney, Accountant
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Why “Ultimate” Venture?We feel that real estate
provides:The ultimate long-term
appreciation.The ultimate
long-term security.
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Thanks for coming.
• Are you tired of Low Bank Rates?
• You can do much better than Bank CD’s.
• Learn today how you can make10% on your money.
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Bank CD Rates (approx.)
$100,000 12 months IRA
B of A .60 % .60 %
Chase .50 % .50 %
Union Bank
.60 % .40 %
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How Does Your Bank Make Money?
• They take in Money for CDs (Yours).
• Then they lend the money out at a higher rate of interest to other people to buy houses.
(We’re eliminating the bank, offering private lending.)
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Private Lending Program Overview To buy houses, we prefer to
borrow money directly from private individuals such as you.
• We pay you 10% to use your money.
• We save almost 7% by not having to borrow from hard money lenders.
• This is a win-win situation.
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Private Lending ProgramHow it Works
• We locate a property we want to buy.• We contact you and invite you to invest
in this property.• Your funds will be wired directly to a
trust account by you and only you.• Upon entering escrow, your funds will
be transferred directly to an escrow account.
• At close of escrow, you will receive the first or second trust deed to the property.
• When the property is sold your principal and interest is wired back to you.
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Documents Securing Your Investment
• Trust Deed on the Property and a promissory note.
• Title Insurance.• Hazard Insurance (fire, theft, etc.)• Written Appraisal before the
renovation.• Written appraisal after the
renovation.
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Primary Investor Example:$200,000 Loan
• $200,000 x 10% annual interest = $6,666.67 for 120 days (4 mo.)
• You receive a first trust deed and a promissory note.
• Principal and interest are wired back to you at close of sale after rehab.
• You may repeat the cycle.
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Secondary Investor Example:$50,000 - $100,000 • $50,000 x 10% annual
interest = $1,666.67 for 120 days (4 mo.)
• You will receive a second trust deed and a promissory note.
• Principal and interest are wired back to you at close of sale after rehab.
• You may repeat the cycle.
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How Can We Buy Houses So Far Below Market
Value?• Our specialty is “distressed” houses
that usually require major renovation. We see value in homes that others don’t see.
• We buy directly from banks who desperately need to sell these homes.
• We buy homes at foreclosure auctions.• We pay cash.
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• Money we borrow is no more than 75% of the value of the home after renovation.
This gives you additional security, because we don’t over-leverage the property.
Your BIGGEST Concern:Protection of Principal
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There is always Plenty of Equity Above Your
Investment.
This provides a 25% cushion for the investor.
25% cushion$300,000 ARV
$225,000 Maximum Loan (75% of ARV)
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How We Make Sure the House Sells
If a home does not sell within 60 days of close of escrow, we do the following:
• Offer a substantial incentive bonus to the agent to sell the house.
• Reduce the selling price. A reduction of up to 25% would
still recover the investment – because we buy only houses that give us a cushion (discount) when we buy them.
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What Happens to My Investment if David Dies?
• The property will be sold and you will receive your principal and interest as agreed.
• Your loan is still secured by the property.
• This will be spelled out in your contract.
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Other sources of funds:IRA Money
• You can invest your IRA funds in real estate and protect your profit from taxes.
• It’s simple and easy.• A financial institution that offers
this program is located in Irvine, CA:
Entrust Group, Irvine, (949) 788-2970
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You’re in Control
• Visit an IRA custodian who handles real restate investments of IRA funds. Entrust Group, Irvine, (949) 788-
2970.• You can roll over IRA funds to
Escrow to invest in real estate.• You Earn 10% annual interest.• When the house sells (closes
escrow), your funds are transferred directly back to your IRA account.
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Do you have a Whole Life Insurance Policy?
• Borrow your Cash Value, which is now earning low CD rates of return.
• Invest the funds with Ultimate Venture LLC to buy real estate with us.
• Earn 10% on your investment.
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Our Competitive Advantage
• Buying with cash.• Buying REO’s directly from banks. • Buying Foreclosures at trustee
sales.• Buying in working class
neighborhoods where the residents have jobs.
• Using quality materials, such as granite, resulting in “like-new” homes.
• Putting “For Sale By Owner” signs up as soon as the front yard is presentable.
• We pay neighbors an incentive bonus for referring potential buyers.
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Who Sells Us Houses?
1. Banks2. Auctions – at court house steps.3. Private Individuals4. REO* Listing Agents5. Realtors
*REO = Real estate owned by a bank.
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Why San Diego?• Best for entry-level homes. • One of the “ten best places
to live” in California.• Perfect weather year-round.
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Company Growth Plans• Purchase 3-4 homes a
month.• Expand into multi-family
units and small apartment buildings.
• Offer Lease Options and buy rental properties.
• Commercial properties for long-term cash flow.
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How to Find Us Location:
2400 Via Mariposa West, Suite 1C
Laguna Woods, CA 92637Phone (949) 340-0290Fax (949) 340-2516Email: [email protected]:
UltimateVentureLLC.com
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Houses PurchasedThree of our 31 completed projects are featured on our website. All projects were profitable.
The pages include financial information, such as purchase price, rehab cost, and sale prices.