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RPM Vault


									                  Raising Private Money
                        Vault Club

REMINDER: Dial in to the
conference call number on your   Tonight’s Theme:
webinar dashboard.
                                 Become a Money Magnet

                                 Tip: If on a land line, please turn OFF
                                 your cell phone or place it 10 feet away.

   House Rules:
    –   Toggle *6 on your phone to mute / unmute OR
    –   Type in your question on the panel.
    –   Direct Client Care questions to the office:
             713-476-0102 or

        Save your account questions for the
        office please.

   Announcement
   Theme Discussion
   Celebration
   Q&A & Deal Review
   Wrap-up
New Member Instructions

1.   Read your QuickStart Guide first.
2.   Access your Private Money Rolodex.
3.   You should be reviewing the weekly webinar videos
     on the Private Money Cookbook System!!
4.   You should be doing the weekly assignments
     assigned on the videos and slides/notes.
5.   Contact the office with questions.

These resources are at

   Each week’s meeting registration is posted here. If you don’t
   receive an email, visit this site.

If you have not received your log-in, contact the office.

   Dan Badinghaus – Partners for Profit
    Student, Provided the Deal
   Daniel Yoo, Multi-Family and RPM
    Apprentice Student – Provided the Buyer
Objective & Expectations

   Objective
    –   Share and mastermind money resources
    –   Share and mastermind deal structure
    –   Vet the sources and share
   Expectation:
    –   Your participation & contribution

This session is not about finding deals but
rather funding deals.
Quote of the week……

   "Life should NOT be a journey to
    the grave with the intention of
    arriving safely in an attractive and
    well preserved body, but rather to
    skid in sideways, body thoroughly
    used up, totally worn out and
    screaming "WOO HOO what a
How does 'Conventional' financing
differ from 'Private Money'?

   Permanent or bridge loans (amortizing or interest-only).
   Standard closing time frame is subject to due diligence
    factors (e.g., appraisal, environmental, engineering and other
    3rd party reports, title, legal). However, some lending
    programs may take significantly longer to close (e.g., HUD).
   Higher leverage (i.e., LTV, LTC) and lower pricing.
   Funded typically by banks/institutions, insurance companies,
    pension funds, and government-sponsored programs (e.g.,
    HUD, FNMA, Freddie Mac).
How does 'Conventional' financing
differ from 'Private Money'?

    Private Money AKA “Hard Money”
    Bridge loans (interest-only).
   Expedited closing time frame subject to due diligence factors (e.g.,
    appraisal, environmental, engineering and other 3rd party reports,
    title, legal).
   Lower leverage (i.e., LTV, LTC) and higher pricing.
   Funded typically by wealthy individuals and private funds which are
    generally less regulated then conventional lenders.
   Private money is used for its funding speed which may be critical for
    certain deals (e.g., 1031 exchange). Although more expensive,
    private debt is usually cheaper than adding an equity partner. Private
    money is also used for deals which carry too much risk for
    conventional lenders, and may require real estate collateral other
    than the subject property.
Theme Discussion:
Become a Money Magnet!

   Predisposed
    –   Someone who has already invested in Real
        Estate Previously
            Seller
            Broker
            Investor
            1031Exchange Client
            Builder
            Don’t ever try to “sell” someone on the attributes of real
             estate investing when there are many already involved!
Theme Discussion:
Become a Money Magnet!

   Low Risk
    –   Management Team Experience
    –   Collateral Protection, %LTV
    –   Extra Collateral Protection
    –   3rd Party Appraisal, Rehab Estimate, Repair
    –   Cash-flow in Excess of Debt Service
    –   Contingency Budgeted
    –   Insurance Coverage – Title, Casualty, Flood, Liability, Key
        Man Life, Disability, Business Income Loss Insurance
Theme Discussion:
Become a Money Magnet!

    –   Financial Transparency, Review of Books
    –   Receipts & Invoices
    –   3rd party Inspection of Work
    –   Controlled Release of Funds
    –   Key Man Disability, Life Insurance
    –   Business Income Loss Insurance
    –   3rd Party Escrow of Purchase Money
    –   1st or 2nd or Blanket Lien Foreclosure Provisions
    –   Ability to Intercede without Foreclosure
Theme Discussion:
Become a Money Magnet!

   High Return
    –   In Todays Market, High Return is relative to current market
        and trends
    –   One to two points over Prime Rate beats the current Money
        Market or CD.
    –   Relative to Low Risk and Control, High Return may not
        need to be so High.
    –   Madoff and other scandals have created “red flags” on
        traditional “High Returns”.
    –   Investors are more cautious and willing to accept lower
        returns for lower risk and more control.

   Who had a breakthrough?
   Who accomplished a 1st?
   Who has a new money source?
   Who has vetted an existing money

   Questions?
   Aha Moments?

    Press *6 or enter through your Control Panel
End of this Session

 Now, Go Raise Some Cash!
    See you next Week – April 13, 2010

   Please answer the brief survey as you exit
   the webinar. Thank you in advance for your

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