Investor Funding Alternatives, LLCInvestor Funding Alternatives, LLC

““Transactional Funding”Transactional Funding”

For Real Estate InvestorsFor Real Estate Investors

SummarySummary

The Real Estate MarketThe Real Estate MarketForeclosures:Foreclosures:- 861,000 homes lost to Foreclosure in 2008.- 861,000 homes lost to Foreclosure in 2008.- Record 800k filed 1- Record 800k filed 1stst Qtr. 2009. Qtr. 2009. - Foreclosures Lost 2009 – 1,000,000, 2010 – 1,050,000, 2011 Est. 980,000- Foreclosures Lost 2009 – 1,000,000, 2010 – 1,050,000, 2011 Est. 980,000- More to Come? – - More to Come? – YES – More than in 2011.YES – More than in 2011.

- - 9-10% of ALL mortgages behind on payments (Unchanged)9-10% of ALL mortgages behind on payments (Unchanged)

- Option ARM Loan Adjustments - - Option ARM Loan Adjustments - $11B/mo. By Fall 2011)$11B/mo. By Fall 2011)$29B recast in 2009, $67B in 2010, $29B recast in 2009, $67B in 2010, Ave. Payment Increase 63%Ave. Payment Increase 63%

- 24-27% of all homes are “under water” (Value versus Debt).- 24-27% of all homes are “under water” (Value versus Debt).

- Unemployment: 26 yr. high 10.0% - Now Around 9%. Recovery? – Not without jobs!- Unemployment: 26 yr. high 10.0% - Now Around 9%. Recovery? – Not without jobs!

BAD NEWS above means BAD NEWS above means OPPORTUNITYOPPORTUNITY for you! for you!

Short Sales: More RE Investors are actively pursuingShort Sales: More RE Investors are actively pursuingBank REO’s: Banks taking discountsBank REO’s: Banks taking discounts

My Estimated Market TimelineMy Estimated Market Timeline::– Foreclosures near/above current level: Foreclosures near/above current level: 12-24 months (2 12-24 months (2ndnd Wave?) Wave?)– Values begin stabilizing (very regional):Values begin stabilizing (very regional): 18-36 months 18-36 months

What Do We Have?What Do We Have?

The Perfect StormThe Perfect Storm

Leading to Real Estate Opportunities!!

Upcoming Waves of Foreclosures

Potentially LARGER Foreclosure waves Mid 2010 and Mid-Late 2011

The Next Big WaveThe Next Big Wave

Your OpportunityYour Opportunity

Not since the RTC in the early 1990’s have investors had Not since the RTC in the early 1990’s have investors had such an opportunity (such an opportunity (Most of us could not participateMost of us could not participate – – mostly commercial properties and large cash needed)mostly commercial properties and large cash needed)

Great opportunity NOW to Great opportunity NOW to “Flip” for CASH:“Flip” for CASH:– Short Sales, REO,Short Sales, REO, Pre-foreclosure, Foreclosure Pre-foreclosure, Foreclosure

What to Do?- Get Educated!!

- TAKE ACTION: Find Buyers, Find Motivated Sellers, MAKE OFFERS

The Business of FlippingThe Business of Flipping

Real Estate Investors contract to purchase and Real Estate Investors contract to purchase and to resale property.to resale property.

Investors need funding for the Purchase:Investors need funding for the Purchase:

Timeframe:Timeframe: Funding OptionsFunding Options::– RehabRehab = Private Lender/Hard Money = Private Lender/Hard Money– Same Day Resale = “Transactional Funding”Same Day Resale = “Transactional Funding”– 1-35 days Resale =1-35 days Resale = Extended Transactional FundingExtended Transactional Funding

The The Purchase & ResalePurchase & Resale Transaction Transaction

A B B C

Seller Investor Investor Buyer

PURCHASE SALE

If purchased AND Sold Same Day = “Transactional Funding”. If required to hold up to 35 days before resale = Extended Transactional Funding.

The Old WayThe Old WaySimultaneous Simultaneous “Dry”“Dry” Closing Closing

A B B C

Seller Investor Investor Buyer

PURCHASE SALE

Buyer “C” $$$ used to close the Purchase from A to B

(No $$ from “B” Wholesaler)(We can no longer (We can no longer “Float” Funds from “C”)“Float” Funds from “C”)

The New WayThe New Way“Back-to-Back”/Separate “Back-to-Back”/Separate “Wet”“Wet” Closings Closings

A B B C

Seller Investor Investor Buyer

PURCHASE SALE

“Transactional Funding” Buyers Funds or Loan

The Current RealityThe Current RealityChanges: by Banks, Title, and State LawChanges: by Banks, Title, and State Law

No more “Dry Closings”No more “Dry Closings” without Wholesaler $$$ to complete without Wholesaler $$$ to complete the Purchase and the Purchase and Banks require Proof Of FundsBanks require Proof Of Funds submitted with submitted with offers.offers.

Now Requires Now Requires “Wet Closings”:“Wet Closings”: ShortsalesShortsales Many REO’sMany REO’s

Other Wholesale deals – Avoids Assignment Fee IssuesOther Wholesale deals – Avoids Assignment Fee Issues

We provide a legal wayWe provide a legal way for you as a Wholesaler to for you as a Wholesaler to complete a same day or extended term Purchase and Resale.complete a same day or extended term Purchase and Resale.

The Solution to the The Solution to the New WayNew Way

Investor Funding Alternatives, LLCInvestor Funding Alternatives, LLC

www.www.IInvestornvestorFFundingundingSSite.comite.com

720-291-9100720-291-9100

What is What is “Transactional Funding”?“Transactional Funding”?

A 100% “liquidity” Purchase “Funding”.A 100% “liquidity” Purchase “Funding”.It is not a traditional Loan – it is “Providing Equity It is not a traditional Loan – it is “Providing Equity

Capital”.Capital”.

NO QUALIFYINGNO QUALIFYING – No Credit or Income for same-day deals. – No Credit or Income for same-day deals.

Conditioned on the same-day “B” to “C” Sale “Transaction” Conditioned on the same-day “B” to “C” Sale “Transaction” closing, or a fully approved buyer for Extended Transactional closing, or a fully approved buyer for Extended Transactional Funding.Funding.

Also know as “Flash Cash”, Dough for a Day, or Flip Funding.Also know as “Flash Cash”, Dough for a Day, or Flip Funding.

Much less expensiveMuch less expensive than “Hard Money”. than “Hard Money”.

The Legal WayThe Legal Way to accomplish Wholesale “Flips”. to accomplish Wholesale “Flips”.

Another “Tool” in your belt.Another “Tool” in your belt.

QualifyingQualifyingNONO Down Payment Down Payment -- 100%100% LTV LTV (including Closing Costs) (including Closing Costs)

NONO Credit Check for same-day transactions Credit Check for same-day transactions

Poor Credit/BK/Foreclosure - OKPoor Credit/BK/Foreclosure - OK

NONO Financials Financials

You Provide Only:You Provide Only:Purchase and Sale Contracts and TitlePurchase and Sale Contracts and Title

Your Business Entity evidence (Must be an Entity)Your Business Entity evidence (Must be an Entity)

(LLC, Trust, Corp, Partnership, LP)(LLC, Trust, Corp, Partnership, LP)

End-Buyer’s Funding – Mtg. Approval or CashEnd-Buyer’s Funding – Mtg. Approval or Cash

Investor Funding AlternativesInvestor Funding Alternatives

SERVICE First – To Build Relationships!SERVICE First – To Build Relationships!Fast Commitments & FundingFast Commitments & FundingOur Title or yours (no Fee increase for yours)Our Title or yours (no Fee increase for yours) (Purchase and Sale to be at same Title Co.)(Purchase and Sale to be at same Title Co.)

Lowest Funding FeeLowest Funding FeeLowLow Administration Fee Administration Fee

LowerLower Minimum Fees on smaller loans Minimum Fees on smaller loans

Much LowerMuch Lower Funding Fees above $1M Funding Fees above $1M

On-Line Proof of Funds LettersOn-Line Proof of Funds LettersOn-Line Funding RequestOn-Line Funding Request

Transactional Fee ScheduleTransactional Fee Schedule

NO SET-UP FEES

$ 20,000 – $90,000 $1,800 Flat Fee

$90,001 – $1,000,000 1.75 pts. Only $495 Application Fees to $1M

$1M - $5 Million 2.75 pts. (Only Loan sizes > $90k)

$5M - $10 Million 3.00 pts Proof of Funds Letter – $0.00

= MORE (Auto Generated at Website)

TO YOU!!!!

Exceptional Service for Exceptional Service for Transactional FundingTransactional Funding

Investor Funding Alternatives, LLCInvestor Funding Alternatives, LLC

www.www.IInvestornvestorFFundingundingSSite.comite.com

Ted AkersTed Akers

720-291-9100720-291-9100