Private Mortgage Lending

Learn the basics. Become the bank

Dan SchwartzReal Estate Investor and Coach

Baltimore, MD

Private Mortgage Lending

Learn the basics. Become the bank

All materials available on this training and provided by Equity Merchants, LLC are

samples and for informational purposes only. Equity Merchants, LLC does not

provide legal advice. Although we go to great lengths to make sure our

information is accurate and useful, we recommend you consult a lawyer if you

want professional assurance that our information, and your interpretation of it, is

appropriate to your particular situation. You are solely responsible for ensuring

that your business practices comply with all applicable, local, state & federal laws.

Background

Traditional banking is not what it used to be

Investors play a role in economic recovery

Real Estate is “On Sale”

Huge Opportunity

Why Listen to Me?

Started Equity Merchants in 2010 with Co-Founder Mike Casey

Completed over 100 transactions over next 2.5 years

Close to $1,000,000 borrowed right now for renovations and rental acquisitions

Spent over $20,000 on education and mentorship

Mike and I

www.MasteryCoachingWithDan.com

Next Up

What is a Private Money Loan?

What Is the Process? (deal example)

Benefits of Private Lending

FAQ: What are the “Worst-Case-Scenarios?”

Where Do Funds Come From?

What is a Private Money Loan?

It is a loan made to a real estate investor secured by real estate. Private money lenders are given a first or second mortgage that secures their legal interest in

the property and their investment.

They are becoming more and more commonplace.

How Does Your Bank Make Money?

Equity Merchants Cuts out the Middle Man

Who is it for?

Ordinary people like doctors, lawyers, accountants, retirees…etc.

People getting very low, inconsistent returns in retirement accounts

People that want to invest passively without being a landlord

WHY Does this Work?

Undervalued Real Estate

Marketing for off-market properties

WHY Does this Work?

Investors

WHY Does this Work?

Undervalued Real Estate

Marketing for off-market properties

Strict Due Diligence Process

Ability to act QUICK!

What is the Process?

Documents

Promissory Note

Mortgage (Deed of Trust)

Insurance

Deal Example5312 The Alameda

AfterBefore

Deal Example

BeforeAfter

Deal Example

Before After

Deal Example

Purchased for $42,500 via short sale

Private lender lent $65,000 at 10% accrued annually

After renovation, we put tenant in placeand refinanced the property with a commercial lender

Privately Lender received payoff of $68,864$3,864 passive profit…tax free*

Lets Look at Private Lending vs. Traditional Savings

2% Bank CD 10% Private Money Loan

*Assume 150k Invested

2 Months

5002,500

4 Months

1,000

5,000

6 Months

1,500

7,500

Where Do the Funds Come From?

401K (past employer)

Personal or Business Lines of Credit

Savings/Checking Accounts

Traditional and Roth IRAsSelf-Directed IRAs*

Home Equity Lines of Credit

Liquidated Mutual Funds/Stocks/Bonds

Self-Directed IRAs

An IRA that requires the account owner to make investment decisions on behalf of the retirement

plan.

In order to invest out of one, you need to “roll-over” your IRA funds into a Self-Directed IRA using a 3rd

party custodian (IRS laws)

www.TrustETC.comwww.TheEntrustGroup.com

Self-Directed IRAs

The ideal retirement investment vehicle:Self-Directed ROTH IRA

Allows you to invest and earn money tax-free. You only pay taxes when you take money OUT at

retirement.

www.TrustETC.comwww.TheEntrustGroup.com

Self-Directed IRAs

What Happens If Investor Doesn’t Pay!?

Restructure Payment Schedule

Deed-in-Lieu of Foreclosure

Foreclosure

Lenders will profit after sale of house

Is there a Minimum Investment?

Typically depends on the real estate investor’s program

Deal Specific

What if I need to liquidate?

45-90 day written notice required to replace funds with another investor

Typically no withdrawal penalty

Not Recommended

Who handles the details?

Closing Attorney

Real Estate Investor

How do you get paid?

Monthly Payments

Lump Sum Payment (Principle + Interest)

Quarterly Payments

Can I make long-term loans?

YES!

Additional Questions

???

info@BaltimoreWealthBuilders.com

Benefits

Produces consistent high returns

Rates do not fluctuate

Straightforward terms

Recorded in land records

Secured by equity-rich and marketable real estate

Tax-free wealth building

Benefits

Passive Income (minimal time required)

No dealing with tenants or contractors

Profitable with NO CAP on earnings

More time to improve your golf game

Multiple loans can be made

Booming industry

Private Mortgage Lending

Learn the basics. Become the bank

info@BaltimoreWealthBuilders.com

Office Line: 443-848-8028

Disclaimer

This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and

fully understanding such documents. Equity Merchants, LLC and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This

presentation should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or

approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.