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Published byRonald Booth Modified over 5 years ago
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Include your photo, your name, your company name and a logo
TITLE PAGE Include your photo, your name, your company name and a logo I will use ABC Investments as an example
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What Does ABC Investments Do?
ABC Investments locates a property to buy at a significant discount below market value. ABC Investments will partner with private investors to purchase and renovate the property. ABC Investments sells the property for profit or holds the property for cash flow and potential appreciation.
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How Can We Buy Houses So Far Below Market Value?
We specialize in locating distressed properties. We know where to look, what to buy, what NOT to buy, and how to renovate. We create value by purchasing distressed properties and turning them into viable investment properties or homes attractive to owner occupants.
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Example of Possible Deal
ARV (After Repaired Value) = $160,000 Amount Needed from Investor= $100,000 LTV (Loan-To-Value) = 62.5% Term = 1 Year 1st Position Note and Deed of Trust as Security Interest Rate = 10%
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Investor Options Interest Payments Quarterly (Long Term Investment)
Annual (Long Term Investment) At the Sale of Property (Short Term Investment) Long Term = over 1 year Short Term = less than a year
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Investor Options Rehab Funds in Escrow Account or paid in Installments
Purchase Funds to be paid directly to Title Company, Closing Attorney or Trustee at closing
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Example Project Purchase Price: $71,000
Before photo of house and purchase price Purchase Price: $71,000
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Before and After Interior Photos
Before Interior photos
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Steps To Fund The Deal ABC Investments prepares Entity in Investor and ABC Investments name. ABC Investments prepares Note and Deed of Trust. Investor signs documents. Investor wires funds to title company. Title Company funds deal.
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Steps To Fund The Deal 6. Title company records Note and Deed of Trust. ABC Investments starts renovation and funds are: Escrowed at the title company and released in increments; Paid directly to construction company from investor as required.
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Example Project Purchase Price: $90,000
Before photo of house and purchase price Purchase Price: $90,000
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Before and After Interior Photos
Before Interior photos
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Initial Deal Structure
Purchase Price = $90,000 Estimated Renovation Budget = $18,000 Closing Costs = $500 Pro-Rated Taxes and Insurance = $1,000 Acquisition Fee Paid Upfront = $2,000 Total Cost Basis Funded = $111,500
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Investor’s Earnings After One Year
$111,500 Principal Invested + 10% = $11,150 = $13,500 Earned in 1 Year Investor has to sign off at closing the closing documents to release the deed of trust and received his/her funds.
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What happens if my Note matures and ABC Investments is not ready to fund my payoff?
Multiple Exit Strategies We can offer you a Note renewal. We can re-finance your Note with another investor. We can sell the property quickly at a discount.
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