sperry & sons - private lending presentation
TRANSCRIPT
![Page 1: Sperry & Sons - Private Lending Presentation](https://reader035.vdocuments.site/reader035/viewer/2022062312/554e0a96b4c90597278b5391/html5/thumbnails/1.jpg)
Generating Wealth With Private Lending
Sperry & Sons Capital
Investments
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Agenda
Today, We Will Discuss:
Earning High Yields
Secured by Real Estate
While YOU Stay In Control of YOUR Money
& Receive MONTHLY Payments
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What Private Lending Is NOT!
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What is Private Lending?
“Private Lending" refers to a private individual making a loan to another
individual with real estate as collateral.
You Are The BankYour Name Is On The Note and Deed of Trust
“Private Lending" refers to a private individual making a loan to another
individual with real estate as collateral.
You Are The BankYour Name Is On The Note and Deed of Trust
![Page 5: Sperry & Sons - Private Lending Presentation](https://reader035.vdocuments.site/reader035/viewer/2022062312/554e0a96b4c90597278b5391/html5/thumbnails/5.jpg)
Why Haven’t I Heard of This?
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Benefits of Private Lending
• Secured by tangible property
• Safety - low risk – As long as there is value in the property, your
investment is secure
• Great returns
• People are familiar with real estate investing because real estate ownership is so common.
• Receive monthly payments
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Basics
• Let’s assume we have a $500k house in the San Francisco Bay Area…
VALUE: $500k
LOAN: $300K (60%)
PROTECTIVE EQUITY: $200K (40%)
We lend NO MORE than 60% of value…
This is our “protection” - our cushion…
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Why Would Someone Pay That Kind Of Interest…?
IMAGINE THIS SCENARIO:
You get a chance to buy a property worth $500,000, in today’s market, for $250,000.
You have 5 days to close.
The bank will only accept cash.
Do you care if you pay 12% for 6 months if you can CLOSE on the deal?
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Someone WILL Pay Because…
• Immediacy: Access to capital much faster than conventional lender.
• Asset Based Underwriting: Borrower qualifications can be subordinate to the value of the property.
• Timeliness: Conventional lenders are not fond of short term loans
• Improvement Costs: “Rehab Loans” can include the cost to improve the property, increasing equity
• Number of Loans: Traditional lenders limit number of loans
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Our BrokerServices
Loan. You Receive
Monthly $$$
How Does It Work?
5 STEP SYSTEM
Borrower Requests Loan and Submits
Docs
Our Broker
ConfirmsViability
InvestorIntroduced
To Project & Makes
Commitment
EscrowOpened & Investor Places Funds
Remember: YOU ARE THE BANK
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What Does It Cost Me?
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Typical Investment
• 60% LTV
• 6 months to 36 months
• 1st Deed of Trust
• 7-10% Interest Rate
• 1% Servicing Fee
• Non-Owner Occupied, 1-4 unit Residential properties (mentioned before)
• Properties within 100-mile radius of office
• Rehab Loans for Fix & Flip deals
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How Am I Protected?
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Every Investment Has Risk!
• Almost all loans will have at least one late payment– The investor actually gets paid more for that because
the borrower pays penalties.
• A portion will turn in “default”• A smaller portion will go into “foreclosure”• Very few make it all the way to auction. Why?
– Protective Equity!
• The MOST important number to look out for in private lending is VALUE of property
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Private Lending vs. Stocks
Private Lending
• Great cash flow generator – and quickly
• Use OPE (other people’s experience)
• Use OPT (other people’s time)
• Passive income• Relatively secure• Higher returns than stock
market
Stocks
• Not good for cash flow• Based on demand and
supply – beyond your control
• S&P 500 Lower returns• No collateral
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In Summary
Private Lending is still one of the relatively safest investments you
can make, offering you a high return with consistent, monthly
cash flow.
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Conclusion
Do you know someone who would like to take advantage of one of the greatest opportunities in our lifetime
with low risk and high returns?
Contact: ---