Private lending 5-2-11-simplified

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Private Lending

• Secured• Hassle-Free• Superior Yields

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Too Good To Be True?

• No! To borrow money from “hard money” lenders, we have to pay

• 12.5% interest• 3.5 points up front (=3.5%• $1,100 processing fee.

Paying you 10% is win-win because we save close to 7% borrowing directly from you.

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Welcome• Our company is Ultimate Venture LLC, founded in January 2010.• We acquire, rehab and sell homes by buying for cash.• The corporate partners are David Stuard and Sheila Kirkland.

• On all REO’s Banks only accept cash, no financing, only cash. This is why we ask you to join us

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Introductions

• David Stuard, manager• Sheila Kirkland, partner, financial

manager• Eric Townsend, Esq., Attorney• Anne Clark, Director of Operations• Lorraine Wright, Chief Property

Analyst• James McKinney, Accountant

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Why “Ultimate” Venture?

We feel that real estate provides:

The ultimate long-term appreciation.

The ultimate long-term security.

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Thanks for coming.

• Are you tired of Low Bank Rates?

• You can do much better than Bank CD’s.

• Learn today how you can make10% on your money.

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Bank CD Rates (approx.)

$100,000 12 months IRA

B of A .60 % .60 %

Chase .50 % .50 %

Union Bank

.60 % .40 %

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How Does Your Bank

Make Money?

• They take in Money for CDs (Yours).

• Then they lend the money out at a higher rate of interest to other people to buy houses.

(We’re eliminating the bank, offering private lending.)

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Private Money Lending

• What is Private Money Lending?• Learn what’s in it for you.

How can you benefit?• Please hold your questions - for

now:1. I’ll probably answer them anyway.2. We will break for questions shortly.3. Some folks have time constraints.

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Private Lending Program Overview

To buy houses, we prefer to borrow money, or work in partnership with, private individuals such as you.

• We pay you 10% to use your money.

• We save 5-7% by not having to borrow from hard money lenders.

• This is a win-win situation.

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Private Lending ProgramHow it Works

• We locate a property we want to buy.• We contact you and invite you to invest

in this property.• Your funds will be wired directly to a trust

account by you and only you.• Upon entering escrow, your funds will be

transferred directly to an escrow account.• At close of escrow, you will receive the

first or second trust deed to the property. • When the property is sold your principal

and interest is wired back to you.

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Documents Securing Your Investment

• Trust Deed on the Property and a promissory note

• Title Insurance• Hazard Insurance (fire, theft,

etc.)• Written Appraisal before the

renovation• Written appraisal when the

renovation is completed

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Primary Investor Example:$200,000 Loan

• $200,000 x 10% annual interest = $6,666.67 for 120 days (4 mo.)

• You receive a first trust deed and a promissory note.

• Principal and interest are wired back to you at close of sale after rehab.

• You may repeat the cycle.

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Secondary Investor Example:$50,000 - $100,000

• $50,000 x 10% annual interest = $1,666.67 for 120 days (4 mo.)

• You will receive a second trust deed and a promissory note.

• Principal and interest are wired back to you at close of sale after rehab.

• You may repeat the cycle.

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How Can We Buy Houses So Far Below Market

Value?• Our specialty is “distressed” houses

that usually require major renovation. We see value in homes that others don’t see.

• We buy directly from banks who desperately need to sell these homes.

• We buy homes at foreclosure auctions.

• We pay cash.

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• Money we borrow is no more than 75% of the value of the home after renovation.

This gives you additional security, because we don’t over-leverage the property.

Your BIGGEST Concern:Protection of Principal

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There is always Plenty of Equity Above Your

Investment.

This provides a 25% cushion for the investor.

25% cushion

$300,000 ARV

$225,000 Maximum Loan (75% of ARV)

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How We Make Sure the House Sells

If a home does not sell within 60 days of close of escrow, we do the following:

• Offer a substantial incentive bonus to the agent to sell the house.

• Reduce the selling price. A reduction of up to 25% would still

recover the investment – because we buy only houses that give us a cushion (discount) when we buy them.

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What Happens to My Investment if David Dies?

• The property will be sold and you will receive your principal and interest as agreed.

• Your loan is still secured by the property.

• This will be spelled out in your contract.

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Any Questions?

• Do you have any questions about the material we covered so far?

• Let’s take 10 minutes to answer any questions you have.

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Other sources of funds:IRA Money

• You can invest your IRA funds in real estate and protect your profit from taxes.

• It’s simple and easy.• A financial institution that offers

this program is located in Irvine, CA.Entrust Group, Irvine, (949) 788-2970

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You’re in Control

• Visit an IRA custodian who handles real restate investments of IRA funds. Entrust Group, Irvine, (949) 788-

2970.

• You can roll over IRA funds to Escrow to invest in real estate.

• You Earn 10-12%.• When the house sells (closes

escrow), your funds are transferred directly back to your IRA account.

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Do you have a Whole Life Insurance Policy?

• Borrow Your Cash Value, which is now earning low CD rates of return.

• Invest the funds with Ultimate Venture LLC to buy real estate with us.

• Earn 10-12% on your investment.

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Our Competitive Advantage

• Buying with cash.• Buying REO’s directly from banks. • Buying Foreclosures at trustee sales.• Buying in working class neighborhoods

where the residents have jobs.• Using quality materials, such as granite,

resulting in “like-new” homes. • Putting “For Sale By Owner” signs up as

soon as the front yard is presentable.• We pay neighbors an incentive bonus

for referring potential buyers.

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Who Sells Us Houses?

1. Banks2. Auctions – at court house steps.3. Private Individuals4. REO* Listing Agents5. Realtors

*REO = Real estate owned by a bank.

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Why San Diego?

• Best for entry-level homes because of the increasing Hispanic population.

• One of the “ten best places to live” in California.

• Perfect weather year-round.

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Company Growth Plans

• Purchase 3-4 homes a month.• Expand into multi-family units

and small apartment buildings.

• Offer Lease Options and buy rental properties.

• Commercial properties for long-term cash flow.

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How to Find Us

Location:2400 Via Mariposa West, Suite 1CLaguna Woods, CA 92637Phone (949) 340-0290Fax (949) 340-2516Email: [email protected]:

UltimateVentureLLC.comWe live right here in the Village.

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Houses Purchased

Three of our 31 completed projects are included in your investor package. All were profitable.

The pages include financial information, such as purchase price, rehab cost, and sale prices.

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Next Step

1. Fill out the “I’m Interested” form and leave it with us for reference.

2. You will be placed on our preferred list, and we will call you as soon as an investment opportunity arises.

3. Thank you. We look forward to investing with you.

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I am Interested!

YES! I would like to participate.

Name _______________________Address ______________________City _________________________Phone _______________________Email ________________________