the raising capital presentation mvi

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Generating Wealth With Private Lending

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  • 1. Mountain ViewInvestors, LLC.Generating Wealth With Private Lending

2. Agenda Today, We Will Discuss:Earning High Yields Secured by Real Estate While YOU Stay In Control of YOUR Money & Receive MONTHLY Payments 3. What Private Lending Is NOT! 4. What is Private Lending?Private Lending" refers to aprivate 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 5. Why Havent I Heard of This? 6. Benefits of Private Lending Secured by tangible property Safety - low risk As long as there is value in the property, yourinvestment is secure Great returns People are familiar with real estate investingbecause real estate ownership is so common. Receive monthly payments 7. Basics Lets assume we have a $500k house in theSan Francisco Bay Area VALUE: $500k PROTECTIVE EQUITY: $200K (40%) This is our protection - our cushionLOAN: $300K (60%) We lend NO MORE than 60% of value 8. Why Would Someone PayThat Kind Of Interest?IMAGINE THIS SCENARIO:You get a chance to buy a property worth$500,000, in todays 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? 9. Someone WILL Pay Because Immediacy: Access to capital much faster thanconventional lender. Asset Based Underwriting: Borrower qualifications can besubordinate to the value of the property. Timeliness: Conventional lenders are not fond of shortterm loans Improvement Costs: Rehab Loans can include the costto improve the property, increasing equity Number of Loans: Traditional lenders limit number ofloans 10. How Does It Work?5 STEP SYSTEM Remember: YOU ARE THE BANKBorrowerInvestorEscrowOur Broker OurRequestsIntroducedOpened &ServicesBrokerLoan and To Project &InvestorLoan. You ConfirmsSubmitsMakesPlacesReceive ViabilityDocs Commitment Funds Monthly $$$ 11. What Does It Cost Me? 12. 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 13. How Am I Protected? 14. Every Investment Has Risk! Almost all loans will have at least one late payment The investor actually gets paid more for that becausethe 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 15. Private Lending vs. Stocks Private LendingStocks Great cash flow generator Not good for cash flow and quickly Based on demand and Use OPE (other peoples supply beyond yourexperience) control Use OPT (other peoples S&P 500 Lower returnstime) No collateral Passive income Relatively secure Higher returns than stockmarket 16. In SummaryPrivate Lending is still one of the relatively safest investments you can make, offering you a highreturn with consistent, monthly cash flow. 17. Conclusion Do you know someone who wouldlike to take advantage of one ofthe greatest opportunities in ourlifetime with low risk and high returns?Contact: Robb Krautbauer505.404.1131