1. Raising Private Money Online Series Class 1: Introduction to Private Money Financing Than Merrill Konrad Sopielnikow Chris Yates

2. Your Coaches Than Merrill Chris Yates Konrad Sopielnikow

3. Why NOW is the time?!

4. The Money Tree Cash Partnering Bank Financing Hard Money Subject-To / Owner Financing Private Money Self Directed Retirement Accounts

5. What is Private Money Financing? Raising and borrowing money for real estate investments from private individuals

6. Why Private Money? No BANKS or Hard Money Fees! Better Terms Speed of Funding No Credit Check No Application Process 100%+ Financing! Relationship Driven Everything is Negotiable!

7. Types of Private Money Cash Retirement Accounts (IRA’s, 401k’s etc.) Liquidated Securities and Investment Assets (Stocks, bonds, mutual funds, CD’s etc.) Home Equity Personal and Business Credit Lines Credit Partners

8. Where to Find Private Investors? REIA and Investor Clubs Through Real Estate Attorneys Networking with Busy Professionals – Attorneys, Doctors, Accountants, Financial Professionals, Other Entrepreneurs Business and Banking Networking Events Family & Friends* - Retirement Accounts!!! Get OTHERS to raise money for you!

9. Preparing Your Marketing PowerPoint Presentation or Video –Before and After Pictures or Videos*** ex. “TRASH TO CASH” from FortuneBuilders Rehabbing Homestudy Course Credibility Packet –Company Resume / Description –Case Studies Outline and Pictures –Investor Program Description & Answers to FAQ –Business Cards (*Referral Reward Program)

10. Meeting Investors Network, network, network… Learn about prospect’s current investments & goals Educate your investor about YOUR business Describe your private money program Ask if they know anyone who may be interested in making high returns and Let them know of your referral program Set up a follow up meeting when interested

11. How Does it Work? Find Unhappy Investor Private Money Meeting with YOU Identify Property Get Money & Close the Deal Sign & File Investor Security Docs Find Wholesale Buyer or Fix up and Sell House Pay Happy Investor

12. Private Money Program 12 % Annual Simple Interest Rate –ex. $200,000 invested for 3 months = ($200k x 0.12 x 3/12) = $6,000 6 month term Principle and Interest payable at sale –Monthly, Quarterly interest payments an option Secured by subject property NOTE: You are the owner on title! Guaranteed 1-3 points (for short term financing) No costs or effort to investor (closing, processing etc.)

13. Documents Promissory Note Mortgage Deed or Deed of Trust Hazard Insurance Policy –Listed as “Mortgagee” Personal Guarantee (***when requested only)

14. Closing Process Funds From Private Money Investor Into Escrow or to Attorney Closing Documents w/ Mortgage Deed, Promissory Note Mortgage or Deed of Trust Filed at the Courthouse INVESTOR GETS: Original of Promissory Note and Copy of Mortgage Deed or Deed of Trust YOU GET: the House

15. Common Mistakes or What NOT to Do Equity stake in a deal (Money Partner) Tours of properties before pre-screening Pooling of money between multiple investors Not associating money with a project

16. Private Money Success Tips EDUCATION –Real Estate Knowledge –Understanding the Market & Alternatives COMMUNICATION –Defining Your Private Money Program –Understanding Investor’s situation / goals EXCITEMENT FOR THE BUSINESS!!! –Always Recruit New $$$ Investors –Networking, Networking, Networking…

17. Case Study 124 Smith Street, New Haven, CT Purchase Price $100k As is value of $150k; ARV of $200k Rehab $30k Investor lending $130k at 12% 6 month note Paid off in 120 days (4 months) $130,000 x.12 x 4/12 = $ 5,200 in interest

18. Case Study 124 Smith Street, New Haven, CT Purchase Price $100k Wholesale value of $150k Investor lending $100k at 12% 7 day flip $100,000 x.12 x 7/365 = $230.14 ***guaranteed 1 point min. = $1,000

19. CM Yates – Case Study CM Yates Purchase Price = $71,000 Estimated Renovation Budget = $18,000 Closing Costs = $500 Pro-Rated Taxes and Insurance = $1,000 Total Cost Basis = $90,500

20. Initial Deal Structure Investor Funds: $100,000 –Lender Fees: $1,500 –CM Yates Cost Basis: $90,500 Remaining Funds = $8,000

21. Joe’s Earnings After One Year $100,000 Principal Invested + 1.5 Points = $1,500 + Interest @ 12% = $12,000 = $13,500 Earned in 1 Year 13.5% APY Secured by Deed of Trust Insured by Hazard Policy

22. Q & A