sp private lender pitch 05.27
TRANSCRIPT
© 2016 by ACS Realty Group, LLC
ACS Realty Group, LLCPrivate Lending Program
Chris [email protected]
May 25, 2016
© ACS Realty Group LLC 2016
The American Dream is Still Alive, Yet More Challenging Than Ever to Attain
A material % of aspiring homeowners can’t qualify for conventional mortgage financing, despite having down payments and the proven capacity to pay rent/mortgage.
Meanwhile….Many investors are uncomfortable with stock market risk, and bank CD rates fall far short of keeping up with inflation.
© ACS Realty Group LLC 2016
The Solution: Seller Finance
1. Private lenders can fund acquisitions safely and securely with no volatility of returns.
2. Deal sponsor (me) can buy homes that may not meet criteria for a successful wholesale or rehab.
3. Turns renters with sufficient down payments and income into owners, improving communities and the local economy.
© ACS Realty Group LLC 2016
Case Study: 3513 Scranton Dr, Richland Hills, TX
• Buy and sell transactions were back-to-back on same day!– No repairs– No holding time/costs– I didn’t have to pay for insurance, property taxes, or title insurance.
• Funded by my Roth self-directed IRA, so all cash flows are tax-free!
© ACS Realty Group LLC 2016
Who is a Private Lender?• An individual who loans money from
his or her investment capital or retirement account(s)
• Not a Partner• One-on-One Transaction
© ACS Realty Group LLC 2016
Why Would You Be Interested?
• Earn up to 16 times more than with traditional sources
• No volatility! Your principal is stable, and you earn a reliable and certain return
• You can get your principal back in case of emergency
• Your money is safe and secure
$$$ $$$
© ACS Realty Group LLC 2016
How to Fund Your Investment• Certificates of Deposit• Money Market Accounts• Checking & Savings Accounts• Investment Capital• IRA and Retirement
Accounts• Old 401K accounts• Home Equity Lines• Brokerage Accounts
© ACS Realty Group LLC 2016
How to LeverageYour Retirement Account(s)
• Open a self-directed IRA at Quest IRA, Equity Trust, or similar custodian– I use and recommend Quest IRA– Complete a “Direction of Investment”
• Open a Solo 401K Plan if you have a business w/ no full-time W2 employees (beyond your spouse)– Provides checkbook control
© ACS Realty Group LLC 2016
How to Use Your Home Equity to Generate High Rates of Return
• Be like a bank and “pocket the spread” (the difference between the rate you earn less the rate you pay)
How to use your stock w/o selling
• Borrow on margin if the rate is low enough and “Pocket the Spread”
© ACS Realty Group LLC 2016
Summary of Terms
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The Private Lender’s Documents
1. Appraisal or CMA2. Promissory Note3. Deed of Trust
(aka mortgage)4. Insurance policy5. Title insurance policy
(title company/real estate attorney prepares all paperwork)
© ACS Realty Group LLC 2016
Where Does the Private Lender Send Funds?
• To the title company’s trust Account
• The private lender NEVER transfers funds directly to the real estate investor
© ACS Realty Group LLC 2016
Am I Concerned About Market Conditions and Not Being Able to
Sell a House?
• No! Because…– I buy at deep discounts–My buyers are shopping
comparable rents, not price–You are well-secured by a low loan-
to-value ratio (I could drop the price significantly and you would still get all your money)
© ACS Realty Group LLC 2016
How Do We Move Forward?1. Tell me how much you want to
invest2. I’ll find us a deal3. I’ll arrange documentation and
closing with title company
© ACS Realty Group LLC 2016
Questions?
Contact Chris Soignier @[email protected] or
817.480.9514
More information @https://soundcloud.com/chris-soignier-341305634/1-audio-track