Mathew Owens, CPAp. 310. 897.1355f. 310. 347.4415e. [email protected]
BECOME A PRIVATE LENDER – MAKE 11% - 25% ON YOUR MONEY
This real estate market has created amazing opportunities for explosive returns. Now is the time to invest! At OwensConsulting, we can show you how to utilize your cash, retirement vehicles and resources to obtain 11% - 25% returns with lowrisk, through strategically placed investment opportunities without having to deal with Tenants, Trash and Toilets!
No more than No more than 70% of the Fair 70% of the Fair Market ValueMarket Value
Fully renovated Fully renovated propertiesproperties
Monthly, Monthly, quarterly, quarterly,
semiannual semiannual payments payments availableavailable
Six months of Six months of prepre--paid interestpaid interest
Monthly payment Monthly payment is covered by the is covered by the
rent on the rent on the propertyproperty
1 1 –– 5 year terms 5 year terms availableavailable
PRIVATE FINANCING SPECIFICS
LOW RISK INVESTMENT
Call to Schedule a Consultation Today!
• Every loan is secured by a trust deed on the property.Trust Deed
• Real estate values will never go to zero like stocks and other investments can.Sustained Value
• The loan is secured at no more than 65% - 70% of the market value in markets that have not declined more
than two quarters in the last 20 years.Loan To Value
• The lender is included as a loss payee on the insurance policy.Insurance
• The lender does not have the risks of ownership but has the control over the asset.Control
• As a private lender you have the ability to be flexible and obtain a higher return on investment through profit split arrangements.
Flexibility
LOW RISK INVESTMENT
www.owenscg.com
Why can we pay you those rates?
Its not the cost of the money but the speed and availability of the funds that is important.
Borrowers have the advantages of loans that can be rapidly processed.
Borrowers do not have to deal with the banks and waste valuable time and resources.
Private investors have flexibility to take profit splits in the property, obtain a set interest rate or both.
Proof of Funds to
OCG
PROCESS
Example Property OverviewComplete Documentation Provided(1) Renovation bid(2) Comparables for property(3) Before & After Pictures(4) Deed of Trust and Promissory Note(5) Closing Documents(6) Appraisals if desired(7) Insurance policy documentation
Memphis Overview
Memphis is the country’s 18th largest city and part of the 41st largest Metropolitan Statistical Area (MSA) with nearly 1.3 million residents. Memphis boasts a diverse and growing economy with its primary industries in distribution, manufacturing, agribusiness and healthcare. It’s known as “America’s Distribution Center” due to its central location and the presence of FedEx World Headquarters. Memphis has a growing bioresearch hub and is home to four Fortune 500 companies with the population projected to grow by 12% by 2020.
OPTIONS
Estimated Rents
Estimated Mkt Value
$800
$80,000
Address
Area
Square Feet
Bed / Bath
Year Built
1603 Waverly, Memphis, TN
Downtown/Mid-town
1,755
5 / 2
1922
PROPERTY DETAILS
Purchase Price (25% MV)
Rehab Amount
Rehab Buffer (15%)
$19,750
$15,000
$2,250
COST ANALYSIS
Preferred Interest Rate (Pre-paid 6 months)
Loan Fee (3.8%)
25% Profit Split when sold (Sold at 80% of MV)
Return on Investment
* Sold at 80% of market value less 8% selling costs within 1 year. Estimated $80,000 market value property and 65% loan for return
examples. If sold in 6 months return is estimated at 25.23%
6.00%
$2,000
$3,000
15.61%
Return Details – Option 1 (Profit Split)
Return Details – Option 2 (Loan Scenario)
Preferred Interest Rate (Pre-paid 6 months)
Loan Fee (3.8%)
Return on Investment
8.00%
$2,000
11.85%
Commitment
Agreement to OCG
Commitment
Deposit to OCG
Property Analysis
Submit Offer &
Earnest Money
Rehab Bid
Submit property
package to lender
Close Escrow
Renovate & tenant
property
Collect Cash flows!
Memphis Real Estate Market
Memphis has one of the highest monthly rent to price ratios in the nationLittle or no depreciation riskHealthy ratio of median income to median home pricePMI risk index ranks Memphis as the 7th least likely metropolitan area to depreciate in the next two yearsA recent study by Moody’s Economy.com ranked Memphis as the 6th most undervalued city in the U.S.Predicted home price appreciation of 5% in 2009Over the past 20 years, Memphis has had only two quarters in which home prices declined.
Repairs After Move in
Commissions
Purchase Closing Costs
Deal Syndication Fee
TOTAL LOAN
$1,000
$3,000
$1,500
$6,000
$52,000
Rehab Buffer (15%)
Rehab Management
Sec 8 Inspection Repairs
$2,250
$2,500
$1,000
LOAN TO VALUE 65.00%