Bio

Background:Background:Sam Stinnett is a CPA and Georgia real estate broker with 20 years experience. He is also an avid self-directed IRA investor. He has been

involved with more than 2000 real estate transactions as an investor in the Metro Atlanta Area with transactional volume of well over $200M. His real estate investments include commercial and residential properties, including brokering deals, originating private mortgages and acquiring tax

deeds. Prior to investing in real estate, Sam owned his own SAP consulting firm servicing several Fortune 100 clients such as Disney, MCI, Halliburton, and Lucent Technologies. Prior to SAP Consulting, Sam was a CPA with Ernst & Young. Sam graduated from the University of

Kentucky with a degree in Finance and Accounting. Sam was the team captain of the University of Kentucky Men's Tennis Team that won the 1992 SEC Championship. Sam resides in Atlanta, GA with his wife Wendy and 2 kids - Will (10 yrs old) and McKenna (5 yrs old).

Real Estate Investing activitiesTax Deed InvestingHard Money Loans

www.IRAPartnerships.com

Sam StinnettS @Sti ttH ldiSam@StinnettHoldings.com

Cell 404-229-8004

Tax Deeds in Georgia

•Proprietary Systems•Experienced Management

Metro Atlanta Real Estate

•Experienced Management

Delinquent Taxes Tax Lien Investment Period12% annual interest

Tax Deed

Sheriff Sale of FiFa

Tax Lien (FiFa) Either Held by County or Sold to 3rd Party

Vesta/JP Morgan/Fortress1st Tuesday each

Month on Courthouse Steps

Redemption Period1 Year – 20%

Penalty – For any amount of time –

Tax Deed Issued to Investor

amount of time –Add’l 10% for each

new year

Quiet Title ProcessApprox $4-8kpp $

Potential Upside to Sale of Property

Recorded in CountyDeed Books

Tax Deed TimelineTax Deed Timeline1 year

k

1 year Mark + 45Purchase Date –

mark

20% Redemption Return

Mark + 45 Days

30% Redemption Return

Cashier Check

Quiet Title Suit

Barment NoticesSent via personal

service

Former Parties in Chain of Title are Forever

Barred from Redeeming.

Tax Deed Purchaser has Title to the

Within 30 Days usually Tax Deed Recorded by

County Clerk in Investors Entity Name

has Title to the Property. For Title Insurance Purposes

most selling companies will obtain a Quiet Title

on the Property.

My objective – 20% Redemption as quick as possible

High profile targets Properties with large mortgages on them with National Regional or Local LendersHigh profile targets – Properties with large mortgages on them with National, Regional or Local Lenders

Why Tax Deeds?y•20% Redemption Fee – Day 1

•Favorable laws in Georgia for Tax Deed Sales

•Tremendous chaos in the Mortgage Industry with Foreclosures & g g ySecuritization

•US Consumer in tremendous debt and if there isn’t an escrow account then property taxes fall to the bottom of the listthen property taxes fall to the bottom of the list

•Georgia Counties are strapped for cash and are quickly selling properties to recoup their tax dollars

2258 Lake Ranch Ct

•$40k Profit in 20 Days – 20% GA Tax Deed Statutory Return

•$200k Investment•Lake Lanier (Hall County) – Atlanta’s main Lake•Tax Value of $329k•$928k CitiMortgage in April 2007•Foreclosed for $447k in Sept 2010

3475 Oak Valley #2330

•$20M Profit in 57 Days – 20% GA Tax Deed Statutory Return

•$100M Investment•Heart of Buckhead – Atlanta GA•Tax Value of $296M•$218M Wells Fargo Mortgage

226 Long Dr, McDonough GA 30253$55M Purchase Price•$55M Purchase Price

•In Rem Judicial Sale•Special Tax Deed•All Liens are cleared60 Day Redemption•60 Day Redemption

Period without Interest•After 60 Days can Sale Property for Market Value

•Sold 2/20/10•35% Absolute Return for Investors•$40M Net Profit on $55M Investment•80 Day Investment Cycle

2832 Havenwood Dr, Conyers GA 30094

Tax Deed Purchase $65,000

Payoff in 36 Daysy y

Check from US Bank $78,000

$13,000 Profit split betweenInvestor and ManagerInvestor and Manager

9764 Sinclair Lane, Jonesboro GA 30238

Owned Melrose HomesDeveloper with HugeWachovia Mortgage

Tax Value $182,077Lowest in Subdivision $115k

Paid $42,700 Feb 2010

Wachovia Payoff $51,240

Investment Cycle 3 months

770 County Line Auburn RdWinder GA 30680 – Barrow Co.Winder GA 30680 Barrow Co.

BB&T $400,000 ForeclosureF b 2010Feb 2010

Purchase Tax Deed June 2010$50,000$ ,

Paid Off $60,000 16 days later

2300 Holcomb Bridge Rd

.41 AcresZoned C1Only entrance to Public Storage FacilityTax Value of $685,000

Purchased Sept 2009 $40 000Purchased Sept 2009 $40,000Payoff of $48,000 in Aug 2010

Sample Current Deals2010 $9 000Purchased July 2010 $95,000

Brand Bank Mortgage $400,000Currently listed FMLS $295,000

Failed Restaurant3 A3 AcresRBC Mortgage $740kPurchased $115kAugust 2010Receiver for RBC Called me 15 days later –he was just appointed

Tax Deed Risks

O f T D d th i fi b l b t•Overpay for a Tax Deed - there is a fine balance between paying as high a price as possible because the redemption fee is based on this amount paid but paying a low amount if you are going to ultimately own it Experience shows that 90% of thesegoing to ultimately own it. Experience shows that 90% of these Tax Deeds redeem on nice properties.

•Property Damage – Fire/Tornado/Vandalism – InsuranceProperty Damage Fire/Tornado/Vandalism Insurance Protection

•Liquidity – Owner or mortgage holder could file bankruptcy and q y g g p ythis would slow down the redemption/barment process

Tax Sales – ‘The Law’Example 10 Page Tax Sale Documentationby Cobb County Tax Commissionery y

http://www.cobbtax.org/Forms/pdffiles/taxsales.pdf

Simple 1 Pager

http://www.cobbtax.org/forms/htmlframe.aspx?mode=content/delinquent_taxes.htm&LMparent=189

https://etax.dor.ga.gov/ptd/adm/taxguide/ocga.aspx

Title 48. Revenue and Taxation

Chapter 4 - Tax SalesArticle 1 - Sales Under Tax Executions 48-4-1. - 48-4-7.p

Article 2 - Purchase by Counties 48-4-20. - 48-4-23.

Article 3 - Redemption of Property Sold for Taxes 48-4-40. - 48-4-48.

Why Private Loans?y

•Favorable laws in Georgia for Mortgage Holders Non Judicial•Favorable laws in Georgia for Mortgage Holders – Non Judicial Foreclosure State

•Tight Credit Market – borrowers are forced to utilize private money while g yputting up a lot of collateral

•Loan to Value – 50 to 65% - We structure the deals – Loan to Own –Make it pain if someone is going to walk awayMake it pain if someone is going to walk away

•Loan Origination Fees – 6pts or minimum $4k (great for these 25k Loans)

•Interest rates of 16% for the first six months and 30% thereafter

www georgiaprivateloans comwww.georgiaprivateloans.com

3414 Skyview Dry

Borrower is Self Employed with Multiple Real Estate pProperties on his credit history

Sales Price $92kBuyer Downpayment $20kLoan Amount $72kAdditi l C ll t l 2 F d Cl D l I l d th t $20k EAdditional Collateral – 2 Free and Clear Duplexes – I valued them at $20k EaPersonal Guaranty$6k Origination Fee & 16% Interest

218 Pine Barren Rd

Borrower is Self Employed

Property Owned Free and ClearTax Value of $275kL A t $31k

and Needed to Consolidate some debts

Loan Amount $31kAdditional Guaranty – Personal Guarantee$4k Origination Fee & 16% Interest

Investment PartnershipspOwned 100% by Investor – Either IRA Funds or Non Retirement Funds

Special Purpose Entity for Tax Deed Purposes & Private Loans

Entity owns 100% of the Assets – Cash, Tax Deeds, Loans

Entity has no leverage

Sam Stinnett – Co Manager of Entity –has signing authority and ability to obtain Cashier ChecksProfits

Split 50/50 with Investor A d M

Bank Account with SunTrust Bank for Rural County Cashier Checks

And Manager

O CNo Overhead charges in LLC or Salaries. Only direct charges related to the investments. Monthly financial reporting by Manager to Investor.

Alignment of Interest – Manager doesn’t get paid until Investor is paid