1. Real-Estate Finance
By Bill Fairman

3. Certainty
Safety

5. 10 Year Treasury Yield
2.67%

6. Wall Street

7. Real Estate

8. My Why

9. Finance Basics, Borrower Risk

10. Finance Basics,Collateral

11. Lowest Risk to Highest Owner- occupied single family
Single purpose commercial or raw land

13. Rate and Terms
SFR Non-Occupied up to 30yrs, 5% 25% down 5-10 homes financed
SFR Non-Occupied up to 30yrs, 4.75% 20% down 4 homes financed
SFR Non-Occupied up to 20yrs, 5.5% 30% down, legal entity
SFR Owner-Occupied up to 30yrs, 4.54% as little as 5% down

15. Commercial Construction Loan Hard Money/Private Loan Home Equity Loan
Non-Owner
Owner-Occupied, FHA 403K Rehab Loan
Commercial Construction Loan
Hard Money/Private Loan
Home Equity Loan

16. Hard Money/Private Lender Terms
2-5 Origination Points = 2-5% of the loan Amount
Interest Only, With or Without Monthly Payments
Lender Will Typically Hold The Rehab Funds
8.99%-12.99% Interest Or An Equity Stake
65-70% Of The After Repair Value

17. Fees vs Equity Split $24,985 285,000 -17,100 -1000 = 266,900 - 200,000
Total Finance Charges With 9 Months Of Payments
$24,985
285, , = 266, ,000
66,900 = 33,450 Profit Split
200K Loan With 3.5 Points & 11.99% Rate
Sales Price 285K
285K - 6% Realtor Fee Closing Cost
$8,465

18. Deal Structure Fix & Flip Rule of thumb on ARV 70% or below
Stay as close to a metro as you can
look for homes 35yrs old or newer
If you’re new, find a mentor
Do not try this remotely
No resort areas

19. Deal Structure Buy & Hold Conventional Financing
9 properties at very low rate, $2,250 income
Best for Acceleration of Assets
Min $250 Cash Flow

20. Deal Structure Buy & Hold, Private Money Partner
20k gets the $850 for 10yrs = $102,000,
after 10yrs signs interest over to partner
20k-8,200 a yr for 10 yrs = 41% return
$80,000 Purchase, $850 cashflow
20k Partner looking for cashflow
60k Partner wants growth
The 20/80 Split
60k partner, after 10 yrs receives a house worth
$107,500 assuming 3% appréciation per year and the cashflow
forever!

21. Deal Structure Buy & Owner Finance
5k down at 7.99%for 15yrs = $ x 180 = $120, k
$5, per year = 10% return
Home is worth 60-65K ARV, you sell for 75k with financing
$45,000 Purchase need 10k in work, all in at 50k
Going rent for the area is $750 per month

22. Getting Expenses Under Control
Top Five
Have a planed budget and start with you
Be penny wise
Highest and best use
Look in the scratch and dent areas
Look into VA’s, fiverr.com upwork.com

23. Diversify

24. Text
Asheville 101 to
39492