The Banking System of the Future

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					 Who Am I, Why Should You Care?
• Lee Arnold, Independent
  Commercial Financing Specialist
• Private Money Bank
• Private Money Loans in all 50
  States
• 100% Financing on Qualifying
  Investment Properties
• Cash Back at Closing for Fix-Up or
  Repair on Deals that Meet Our
  Parameters!
           Today’s Goal

To help you fund more deals, in more
  places, more times, so you get paid
              more often


Would That Be Beneficial For Anyone
             in Here?
     How to Get the Most Out of This
             Presentation

•   Take Good Notes
•   Decide On Your Specific Action Points
•   Be Attentive and Present
•   On Completion, Take Immediate and
    Decisive Action
   In a Moment You Will Know…
• How to Find Deals that Funding Loves
• How to Get Your Deal Approved
• How to Confidently Approach EVERY Seller
  Knowing That You Are Backed By Millions of
  Dollars in Purchasing Power!


              Best of All:
      Good Credit is NOT Required!
Would You Agree With This Quote…

“A Bank is a place that will lend you
  money if you can prove that you
           don’t need it.”
              -Bob Hope

                 OR
“A banker is a fellow that will lend
 you his umbrella when the sun is
  shining, but wants it back the
     minute it begins to rain.”

            - Mark Twain
             Which Caused…
• As of August 20th, 118 Banks have failed in
  2010 (Reported in USA Today)
• 2009: 140 Banks Failed
• 2008: 25 Banks Failed
• 2007: 3 Banks Failed
             As A Result…
• No More Consumer Confidence
• No Trust in Banks
• No Confidence in the Government
• No Faith in the FDIC
• Real Estate Value has Fallen 35-40%
  Nationally
• And NO Banks Are Lending to Investors
 Which Leads Us To Your Only Source
       of Competent Funding
Private Money Allows You to:
Buy Property in a Down Economy regardless of
• Credit Score
• Background
• Knowledge Base
• Income Status
• Employment Status
• Current Situation
 Where Can You Find Private Money
People you know who have:
• Home equity
• CD’s
• Stocks
• Commodity
• Precious Metals
• Hedge Fund
• Foreign Exchange Currency
• Borrow Against a Real Estate Portfolio
                    OR…
We Can Do It For You!
    Introducing…
Your #1 Source to Funding Every Deal
            Every Time
• Unending Source of Capital
• Networked with Strategic Partners All Over
  the United States
• Created on 50 Years of Combined Legal and
  Real World Experience in Real Estate
  Acquisition and Funding
• We Play the Perfect Matchmaker Between
  Funds and Deals
• Is Absolutely Secure
• Gives You Complete Control
• Gives You Funding Without Conditions:
  – Perfect Credit
  – Employment
  – Income Status


  Wealth is not determined by the amount of
   Money you have, rather by the number of
               Assets you Control.
           Remember:
    Funding Doesn’t Care About
•   People
•   Credit Score
•   Background
•   Knowledge Base
•   Income Status
•   Employment Status
•   Current Situation
              Here’s An Example:
          Borrower A and Borrower B
• Borrower A:
  –   Has a 750 Credit Score
  –   Been at his J.O.B. for 10 Years
  –   Has lived in the same house for the last 15 years
  –   One credit card drawn down 30%
  –   Has $20,000 to invest on deal
• Borrower B:
  – Has a 580 Credit Score
  – Is a Real Estate Investor but lost 50 properties to
    Foreclosure, Bankruptcy, or Short Sale in 2008
  – Has $50,000 to Invest on Deal

  Borrower B is a better choice… Why?
 Why Private Lenders Will Fund…
If the First Trust Deed Notes Are Backed By Real
   Property and are:
  – Tangible Investments
  – Guaranteed by Individuals with Proven Track
    records
  – Never More than 65% of Purchase or Acquisition
    Price
  – The borrowers Have Funds to Make Monthly
    Payments
  – The Property is in a Good Area
  – The Market will Support Exit Strategy
       Know What Funding Loves
•   Single Family Homes
•   Location: Already Established Areas
•   Ugliest House on the Prettiest Street
•   65 cents on the Dollar
•   Low Risk / High Yield
      Check Out This Deal…
• Purchase Price:
  $60,000
• Loan Amount:
  $53,125
• Estimated Value:
  $90,000
• Exit Strategy:
  Rehab and Sell
         And This Deal…
• Purchase Price:
  $179,000
• Loan Amount:
  $162,750
• Estimated Value:
  $217,000
• Exit Strategy:
  Rehab and Sell
         And This Deal…
• Purchase Price:
  $170,000
• Loan Amount:
  $160,000
• Estimated Value:
  $200,000
• Exit Strategy:
  Rehab and Refi
         And One More!
• Purchase Price:
  $98,000
• Loan Amount:
  $112,500 included
  10,000 for rehab
• Estimated Value:
  $149,000
• Exit Strategy: Rehab
  and Sell
Commercial Deals that Funding Loves
• High Cap Rate of 15 -25%
• Great Income Potential
• Sale Rate is Low Because Of:
  – Mismanagement
  – Disrepair
  – Bad Part of Town
  – Financially Challenged
• Existing Cashflow
         Several Commercial Deals!
**Ambulance Service - Commercial/ Cash Out Refi - $1,500,000 loan
Direct Valuation: $2,500,000, 60.00% LTV
10.25% interest rate, prime + 7.60%
3 years interest-only, 5% of amount prepaid for first 18 months
17,495-sq. ft. building contains Hillsboro, OR-based ambulance service
Proceeds used to pay off tax liability in order to keep business operating smoothly.



**Office/Retail - Commercial/ Lease to Buy Purchase - $350,000 loan
Direct Valuation: $625,000, 56.00% LTV
13% interest rate
2-years interest-only, 6 months interest guarantee
8,013-sq. ft. office and retail building
Proceeds used to pay off matured private contract. Site has 100% tenant occupancy as
of October 2008.



**Light Industrial – Commercial/ Cash Out Refi- $300,000 loan
Direct Valuation: $850,000, 35.29% LTV
12.25% interest rate, prime + 8.50%
3 years interest-only, 5% for 12 months
10,230-sq. ft. light industrial building
Proceeds used to pay off flooring line as well as for working capital.
          Several Commercial Deals!
Laser Supplies/Accessories – Commercial/ Cash Out Refi - $490,000 loan
Direct Valuation: $800,000, 61.25% LTV
12.00% interest rate, prime + 9.00%
3 years interest-only, 5% for 15 months
6,200-sq. ft. building contains laser supply and accessories business
Proceeds used as capital to expand business into new markets, i.e. medical field.


**Golf Course – Commercial/ Cash Out Refi - $850,000 loan
Direct Valuation: $2,500,000, 34% LTV
12.25% interest rate, prime + 7.75%
3 years interest-only, 5% of amount prepaid for the first 12 months, 15% annual window
124-acre site used as a golf course
Proceeds used to consolidate business debt and to purchase new equipment and as
operating capital.



**Multi-Family – Residential/ Cash Out Refi- $400,000 loan
Direct Valuation: $750,000, 53.33% LTV
8.85% interest rate, prime + 5.60%
3 years interest-only, 5% of amount prepaid for 12 months
9,872-sq. ft. building for investment purposes.
Proceeds used to pay off loan costs, suppliers, contributors to project, and to set up 3-
month interest reserve.
          Several Commercial Deals!
 Light Industrial – Commercial/Cash Out Refi - $300,000 loan
 AALS Direct Valuation: $850,000, 35.29% LTV
 12.75% interest rate, prime + 7.75%
 5 years interest-only, 5% of amount prepaid for the first two years
 10,596-sq. ft. building contains automotive business
 Proceeds used to purchase new equipment as well as for cash reserves.




 **Multi-Family – Residential/Rehab - $1,300,000 loan
 AALS Direct Valuation: $2,000,000, 65% LTV
 10.00% interest rate, prime + 6.00%
 12 months interest-only, 6 months interest guarantee
 10,516-sq. ft., five-building investment property
 Proceeds used as cash out and to finish borrower’s construction project.



**Construction/Remodeling – Residential, Non O/O/Refi - $247,500 loan
AALS Direct Valuation: $450,000, 55.00% LTV
10.50% interest rate, prime + 6.50%
3 years interest-only, 5% of amount prepaid for 18 months
2,570-sq. ft. dwelling for residential.
Proceeds used to pay off existing first, cover costs, and to provide cash out.
         Several Commercial Deals!
**Multi-Family - Residential/ Purchase - $887,500 loan
Direct Valuation: $1,350,000, 65.00% LTV
8.85% interest rate, prime + 5.60%
3 years interest-only, 5% of amount prepaid for the first year
11,260-sq. ft. property contains multi-family property
Proceeds used to purchase subject property.



**Office/Retail – Commercial/Lease to Buy Purchase - $550,000 loan
Direct Valuation: $1,100,000, 50% LTV
9.50% interest rate, prime + 6.25%
2 years interest-only, 6 months interest guarantee
10,382-sq. ft. building for office/retail purposes
Proceeds used to exercise lease option to purchase, cover closing costs, and impound
for following year’s property taxes.



Paving/Surfacing Business – Commercial/ Refi- $625,000 loan
Direct Valuation: $1,050,000, 59.52% LTV
12.25% interest rate
12 months interest-only, 3 month interest guarantee
11,374-sq. ft. building contains paving and surfacing business.
Proceeds used to pay off matured loan and for equipment purposes.
    How Do You Attract Private Money?
•   Put the Property Under Contract
•   Have Earnest Money Available
•   Establish a Deadline of 30, 60, 90 Days
•   Choose Something Economically Priced
•   NOT a Personal Residence

     NOTE: Shop Early and Quickly for Private
     Money—NEVER Wait Until the Last Minute
    What a Packet Should Look Like:
• Purchase and Sale Agreement signed by both parties
• Proof of Consideration
• Private Money Bank.com Application
• Current Credit Report
• Proof of Funds
   – Bank statements
   – Investment accounts
   – Partner’s information
• Property Information (Tax Assessor’s Info)
   – Square footage
   – Year built
   – Size of lot
• CMA- Comparable Market Analysis
Are You SERIOUS About Making
     Money In Today’s Market?


   All You Need is 2 Things…
       #1
Viable Market Place
     #2
A Proven System
         Simply Fill Out The
    Webform With Your Great Deal
• Our team at PrivateMoneyBank.com will then
  call you and support and guide you through
  the package submission
• Once your deal is accepted, we’ll match it with
  a Private Lender
• Your Banking and Funding Woes are OVER!
www.PrivateMoneyBank.com/larnold
       We’ll Even Throw In:
Two Tickets to Network Mastermind




                     Value: $3,997
We’ll Take Care of the Rest!

www.privatemoneybank.com/larnold

				
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posted:9/29/2012
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