Private Lending Presentation

This is not a public offering or offer or invitation to sell securities or make an investment.

www.BuyBaltimoreProperties.com

2657-G Annapolis Rd., #399, Hanover MD 21076

(410) 905-5454 Keith; (410) 948-9434 Shannon; (910) 429-5217 Zach; (919) 448-5404 Nate (410) 630-7222 Fax

[email protected] October 2009

P r i v a t e L e n d i n g

P r e s e n t a t i o n

How to Earn 6% to 14% Safe, How to Earn 6% to 14% Safe,

Secured, Fixed Returns on Your Secured, Fixed Returns on Your MoneyMoney

UU NN I Q U E I Q U E PP R O G R A M S T OR O G R A M S T O LL E N D E N D YY O U R O U R MM O N E Y O N E Y SS A F E L YA F E L Y , , UU S I N G S I N G WW E L L E L L SS E C U R E D E C U R E D RR E A L E A L

EE S T A T E S T A T E CC O L L A T E R A LO L L A T E R A L






Who We Are:Who We Are:

BuyBaltimoreProperties.com is a private for-profit Real Estate Investing Company founded by Keith French, Shannon French, Nate Gustavson, and Zach Fuller. Since early 2005, Keith French has been operating in Baltimore, Maryland and the surrounding areas using the entity United Properties Group, LLC (UPG). In early 2007, UPG joined forces with Hansen Corlina, LLC (Hansen), a South Carolina based company founded by Shannon French, also a for-profit Real Estate Investing Company.

BuyBaltimoreProperties.com (Formerly UPG) BuyBaltimoreProperties.com (Formerly UPG)

has purchased and sold over 150 properties has purchased and sold over 150 properties in the Baltimore Area over the last 4 yearsin the Baltimore Area over the last 4 years ..

Prior to starting in real estate, Keith spent 15 years working for three different Fortune 500 companies handling all aspects of finance and operations, and working in over 25 different foreign countries. Shannon spent 5 years as a manager for a non-profit organization and 3 years in a Fortune 500 company in administrative management. Keith received a Bachelor of Business Administration (BBA) at the University of Louisiana at Monroe (ULM) and a Masters of Business Administration (MBA) from Louisiana State University (LSU). Shannon received a Bachelor of Science (BS) from the University of South Carolina (USC). Both Keith and Shannon have over 1,300 hours of professional real estate training. Keith has a Masters in Real Estate from Robert Allen’s Enlightened Wealth Institute (EWI) and Shannon has a Masters in Real Estate Investing from Ron Legrand’s Financial Freedom Academy, a Division of Global Publishing, Inc. Because Keith and Shannon are considered to be real estate experts, they have been invited as guest speakers for some of the nation’s leading real estate gurus including Ron Legrand, Ben Pargman, Richard Roop and Dan Doran. These events were held in cities like Orlando, Florida and Atlanta, Georgia. They have also been guest speakers for many local real estate events such as for Peter Giardini’s The Club, Dawn Lewis’ Women






Investors of Real Estate Group (WIRE), and Bob Brendel’s classes at the Baltimore County Community College (BCCC). Prior to starting in real estate investment, Zach Fuller and Nate Gustavson connected while at the University of Colorado, Boulder. They both built successful exterior painting companies in the suburbs of Denver, Colorado. After college, Nate went to work on Wall Street and quickly made his way to a top level institutional sales representative. Zach volunteered for the US Army and spent two years in the JFK Special Warfare School from which he graduated as a Green Beret. After five years and two combat deployments, Zach was honorably discharged at the end of his contract. Both Nate and Zach had taken up real estate investing in addition to their other endeavors. They reconnected in North Carolina to focus full time on real estate investment and built a large organization of like-minded investors. Because of the phenomenal real estate opportunities, they took their business to Baltimore where they met Keith and Shannon. From 2005-2007, UPG experienced tremendous growth and success…more than what either UPG or Hansen could have handled alone. In 2009, BuyBaltmoreProperties.com was created to handle the growth and streamline the residential real estate investment process. By leveraging Keith, Shannon, Nate, and Zach’s combined creative strategies towards an ever-changing industry, a synergistic partnership was created. Streamlined focus, effective systems, and leveraged individual talents combined with the vast housing needs of Maryland’s consistent revitalization and the fast approaching Base Realignment and Closure (BRAC) and Biotech Research Center developments, a tremendous opportunity for both companies to grow exponentially together has become a reality. Through every closed transaction, all directly involved reap far more benefit than what could have been accomplished, if anything, separately. Whether they are distressed sellers, credit/finance-challenged buyers, realtors, attorneys, contractors, private lenders, insurance providers, mortgage companies, banks or other real estate investors, we have become experts in creating






The indirect benefits of our business are synergistic. Problem properties are rehabbed, increasing not only its value, but that of the surrounding community. Neighbors of our rehabbed properties have become some of our biggest advocates! Yes, of course, we are “For-Profit” and our companies’ high ethical standards insist that we also operate to create wealth opportunities for those we work with and service. We simply won’t do transactions that would compromise our integrity nor will we tolerate anything less from our business associates.

Everyone understands a price can’t be placed on Peace of Mind. How much is a second chance worth to someone who has experienced hardship? Have you ever longed for a “Do-Over” or to “Press the Reset Button” on the predicament at hand? We’ve all made what we thought were good decisions at the time but only later discovered that it was in fact a mis-step. How many times have you wished you could just turn back the clock and decide things differently? Well, we can’t literally turn back the clock for our clients, but we have time and time again provided services that relieved a tremendous burden from their shoulders so they could move on to better things.

We work with Sellers who:We work with Sellers who:

Are motivated and need to sell quickly due to job transfer or loss, divorce, income change, downsizing, tired landlords, house needs too many repairs and more.

Simply don’t want to wait the time it will take to sell their home through a Realtor, or go through the hassle of showing their home, qualifying buyers, negotiating contracts or fixing up the property for sale.

Just want a quick, fair, hassle free offer to sell their house.

We work with several types of Buyers:We work with several types of Buyers:






Tenant-Buyers: Some want to secure a home, live in it now and want to explore all options in how, when and what type of financing they will get to buy the home. In some situations they need time to alleviate a shortage of down payment, time to solve credit issues, or just want to “try-out” the house, schools or neighborhood. This type of arrangement is frequently called a Lease with an Option to Buy or Rent-to-Own.

Retail Buyers: First time and repeat home buyers who want a fully renovated home that is of better quality than the other houses on the market, and is priced below the current retail prices of other houses.

Wholesale Buyers/Investors: We also buy homes and resell them quickly to other investors and end users. Depending on the situation, we may only need to do some minor repairs and/or cleanout before reselling.

This gives us a very large pool of diverse buyers who make great customers and allow us to buy and sell very quickly.

What We Do:What We Do:

We Provide Sellers and BuyersWe Provide Sellers and Buyers Unique Opportunities andUnique Opportunities and

Options They Don’t Have ElsewhereOptions They Don’t Have Elsewhere We Provide Sellers:We Provide Sellers:

• A no hassle, friendly transaction • A quick and flexible home sale • A fair price and quick attention • Ability to sell their house in “as-is” condition • Clear, understandable paperwork • Ability to move when they choose






We Provide Buyers the Above, Plus:We Provide Buyers the Above, Plus:

• Time to work out credit issues • An innovative savings program to build up enough down payment to purchase • Someone who understands their problems and can provide solutions

FLEXIBLE PROGRAMS DESIGNED FLEXIBLE PROGRAMS DESIGNED FOR YOUFOR YOU

How We Can Help You, the Lender:How We Can Help You, the Lender:

• We are local real estate professionals with a proven track record, who have – Safe, Secure Real Estate Deals– with excellent locations, near schools, shopping and employment centers.

• We have programs to suit your terms and needs. For example, for those:

o With Traditional IRA funds, we can assist in setting up a Self Directed IRA that will allow your IRA to lend funds for our deals TAX DEFERRED or for those with a Roth IRA, TAX FREE.

o With personal, family or business funds available for investment.

o With 401(k) funds to invest.

o With a Home Equity Line of Credit (HELOC) to invest.

o Who need to form an LLC with others and loan via the LLC to our Company.

• We borrow for renovated and un-renovated properties, and long and short term projects.






• With as little as $5,000 you can invest your funds with good, safe, secured, higher than market rate returns.

• You can choose if you want monthly payments (6%-10% interest), quarterly payments (8%-12% interest), or one payment when the property sells (10%-14% interest). Rates depend on the lien position of the loan and the term of the loan.

• Once we have an investment opportunity for you, we’ll provide the details. We’ll answer all of your questions to your satisfaction before we do business together.

The “Dirty Little Secret”The “Dirty Little Secret” your stockbroker does NOT want you to your stockbroker does NOT want you to

know…know…

You can control your investments in your retirement and investment accounts, and the

IRS approves it!

You Have a Choice…You Have a Choice…

Stay in the CD, stock, bond and treasury Stay in the CD, stock, bond and treasury markets:markets:

Χ Guess at the next uncertain market wave Χ Hope for the best Χ Gamble on the future Χ Accept low returns that don’t keep up with inflation Χ Have no control






Or, invest in wellOr, invest in well -- secured real estate notes:secured real estate notes: Know the collateral Know your borrower Know exactly what you will be earning See the details Make your own decisions Be in control of your future Decide the loan terms and return you wish to have Eliminate concern for macro economics

The Choice is Yours!The Choice is Yours!

Please Read the FollowingPlease Read the Following Special Report… Special Report…






Created and Distributed as a Courtesy of

BuyBaltimoreProperties.com 2657-G Annapolis Rd, Suite 399

Hanover, MD 21076






Dear Private Lender,

Are You Expecting Social Security To Provide Are You Expecting Social Security To Provide Your Retirement? Do You Believe The Stock Your Retirement? Do You Believe The Stock

And Bond Markets Will Make YAnd Bond Markets Will Make You A High Rate ou A High Rate Of Return, Consistently, Year After Year, With Of Return, Consistently, Year After Year, With

No Losses?No Losses?

Are You Currently Earning Between 6% and Are You Currently Earning Between 6% and 14% Annually on Your Investment Capital Every 14% Annually on Your Investment Capital Every

Year?Year? If the answer is NO, and we are sure it is, please pay very special attention because the following information could make you thousands of dollars in the coming years, simply by increasing the yield on the same money you’re investing now. You need someplace where your money won’t be losing value, like it has for so many recently in the stock market. Playing the stock market is like gambling with your money in Vegas. Your broker and banker won’t be telling you about these places, -not if they want to keep their jobs-, as there are no commissions paid when you use your money for investments that you control. You do have choices, so don’t let your hard-earned money disappear down the stock market drain. Learn what only 2% of Americans know about making smart choices with their savings and retirement accounts. Read this Special Report, and learn how to earn 6% to 14% Tax-Free with your savings and retirement accounts….Take control of your money now! We would like to spend the next few minutes talking with you about a way you can control your investments and safely make them grow at double your current rate—even triple or quadruple, especially when compared to recent market returns! It happens every day with our company and we already have very satisfied, very wealthy private individuals investing in our real estate deals. What we’re going to






share with you is very common in real estate circles and has been going on right under your nose in every city in America. Educated investors have been utilizing this investment for years. In fact…

There Have Been Entire CompaThere Have Been Entire Compa nies Built Around This nies Built Around This Investment and Those Who Do It Properly Have Grown to Investment and Those Who Do It Properly Have Grown to

Huge Proportions.Huge Proportions. This is a very safe investment that produces high yields while at the same time provides security at a fixed rate of return. Do you know what $25,000 is worth in five years compounded at a 3% yield? It’s worth $29,040. But now let’s take that same $25,000 and invest it for the same five years at 12% simple interest instead of 3% compounded. Now it’s grown to an amazing $40,000! That’s a $10,960 Difference Simply by Upping the Yield from 3% to 12% …… That’s An Extra $2,192.00/year

Take Control of Your IRA, Pension Plan, Savings or CDs

Increase Your YieldIncrease Your Yield

Earn 6% to 14% Instead of the Average 2% to 4% Interest Take a look at the following chart……

5 Years

Amount

3% Compounded

12% Simple Net Increase

$10,000 $11,616 $16,000 $4,384 $25,000 $29,040 $40,000 $10,960 $50,000 $58,081 $80,000 $21,919 $100,000 $116,162 $160,000 $43,838






These numbers are huge when you consider that in the above example the interest earned on the 12% investment could be invested to begin earning 12% too!!!!

If you expand it to a ten year term, your $25,000 would be worth $33,734 at 3% but if you change the yield to 12%, it grows to an incredible $55,000. That’s $21,266 additional dollars you will actually receive. Can you really afford not to control your own investments? Does it make sense for a bank to run your investments for you? They would like for you to believe it does. Well, there is an alternative for you to consider. That Well, there is an alternative for you to consider. That alternative is……alternative is……

Private Mortgage LoansPrivate Mortgage Loans

You can loan money, secured by a mortgage that will not only give you the safety you want, but will also give you the high yield we’ve discussed. Now, you can make the same money the banks have been making on your money!

Let me see if I can answer some of the questions Let me see if I can answer some of the questions you may have abouyou may have about making private loans.t making private loans.

Who Borrows At High Rates? We do because we have learned that…

It’s Not the Cost of Money That Counts, but the Availability. Speed is the Key!

We make it possible to acquire good deals in houses because the funds are available from private lenders that would not be available from banks. Having ready cash-on-hand for deals gives us a big edge over competition. If a Real Estate Investor is talented at locating great deals on houses, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing






him for being an astute Real Estate Investor. Having the money available will make or break the deal and paying a higher interest rate is irrelevant compared to…..

The Loss of Thousands of DollarsThe Loss of Thousands of Dollars in Profit in Profit If the Money Weren’t AvailableIf the Money Weren’t Available

What Kind of Loans Are Private Mortgage Loans? Let’s clarify what kind of loan a private mortgage loan is. It is a loan that you

make to a Real Estate Investor and in turn your loan is secured by the actual property that the Real Estate Investor purchases. That gives you security.

WinWin --Win! Flexibility is Key to Success.Win! Flexibility is Key to Success.

You, the Lender receive a safe investment with a huge return. We, the Investor get the freedom to purchase houses quickly and endlessly.

We are not talking about high loan-to-value (LTV) loans that banks and

savings and loans make on homes. We deal with very low LTV loans. By that, we mean no higher than 75% of the value of the property securing the loan. Our typical LTV is 65% to 70% when both acquisition and renovation costs are included. That gives you additional security.

This means if a house appraises for $60,000, we could purchase and renovate it

for $45,000 or less! That’s a 75% loan-to-value. It’s obvious why this is a much safer approach than what most lending institutions implement. Although it’s likely that the 125% loans banks used to make are all but non-existent in today’s market, banks still make loans at a 90%, 95%, or even 100% LTV ratio. Banks just don’t have any cushion. That is why properties at foreclosure auctions typically are not a good deal for the investor because the bank is looking to recover the entire loan amount on the property they now own.

You, as a lender, won’t lend more than 75% LTV, regardless. You’re making a safe loan. You should never make a loan without a minimum of 25% safety net. We don’t violate that rule, so you come out a winner. Do I need a lot of money? No. We have made loans as small as $5,000. The amount of the loan is determined by the borrower’s needs.






Who handles all of the details? We will. It’s our job to get you proper documentation and protect your interest. All of this costs you nothing. The borrower pays all the costs. If you make a $25,000 loan, you send funds for $25,000 directly to the closing attorney/title company and you get a mortgage for $25,000. How do I get paid? We will set up your account with our title attorney. The interest rate paid will be determined based on the way the private loan is structured. We can offer higher interest rates for loans that accrue interest (i.e., payments are deferred) rather than requiring monthly or quarterly payments, and for loans with a second position lien. Just relax and we will send you a monthly interest only check for 6% to 10%, quarterly interest only check for 8% to 12% of your investment or one check once the house is sold at 10% to 14% interest if that is easier for you. Either way, you win because your return is fixed and secured by the property. Is this a long-term investment?

It can be any term you want – one year, two to five years, etc. You’re the boss, you pick the term, and we will match the right investment for you…it’s that simple! Usually a private investor wants a two to five-year term, but some don’t care if it stretches to ten or fifteen years. What if I want to liquidate before the term that I originally agreed to? If you want out prior to the loan end date, it takes anywhere from 30 to 120 days to find a new lender to replace your loan and may require a discounted payoff. You really shouldn’t make mortgage loans if you feel you will liquidate shortly, but the option is always available. Just call and we will handle all of the details. Is my investment really as safe as it sounds? Yes! We follow these common sense guidelines that we’ve talked about.

Your money will grow two, three, or even four times faster than your current investments and you maintain control.

Remember that making loans is a business and should be treated like a business. If you set up a simple system and let the professionals implement the system, your loan portfolio can be hassle free and produce staggering yields. Also remember, all costs are to be paid by the borrower…. not you!






Is this a mortgage pool? No. You make the whole loan yourself. You get a lien against the property. You are the bank. How do I use my IRA or pension plan? Making real estate loans is a widely accepted use for IRAs and Pension Plans. Think of it, not only can you loan out money that has been limited or unavailable previously, but now you can make it grow rapidly…. Tax Deferred! Or for ROTH IRAs, Tax FREE!!! Since Uncle Sam isn’t taking a bite out of your profits until you draw out the money, unless you have a Tax Free ROTH IRA, more money is left in the account to compound and grow. The results are staggering…

You will be receiving interest, and it’s all legal and approved by the approved by the IRSIRS .. In order for you to use retirement accounts for loans they must first be administered by a “Third Party Administrator” or TPA. This TPA is set up and approved to administer your loan activities. This means you will probably have to transfer your current plan to one of these TPA’s, unless of course, your present administrator is already set up to do that. When your TPA is located, simply send the transfer form to them and they’ll do all of the work for you. Once you’ve done that…..

You’re Ready to Make Loans!You’re Ready to Make Loans!

When we’ve selected a property for you to loan on, you simply notify your TPA where to send the check for the gross amount of the loan and you’re in business! There should be no cost to you except your plan’s setup and administration costs. Some TPA’s will even collect monthly payments for you and deposit them into your account. We have selected Security Trust Company as our preferred TPA. You can find information on them at www.securitytrustcompany.com. It’s simple and fast! If you have any questions regarding your plan or its administration, contact your Plan Administrator. If you need help transferring your IRA just give our local Security Trust Company contact, Satchie Carvounis, a call and remember to mention that we referred you. Here’s her contact info:






Satchie Carvounis

Mid Atlantic and South Regional Manager, Security Trust Company 223 N. Prospect St, Ste 202

Hagerstown, MD 21740 Direct: 301-356-8989

Toll Free: 866-682-3683 [email protected]

Corporate Office: 301-665-2830 www.SecurityTrustCompany.com

Other Self-Directed IRAs we’ve worked with: Pensco Trust Company – www.PenscoTrust.com Take Control With a Self-Directed IRA 450 Sansome Street, 14th Floor, San Francisco, CA 4111 The Entrust Group – www.TheEntrustGroup.com Self-Directed Retirement Plan Services Corporate Headquarters, 9444 Double R Boulevard, Suite A, Reno, Nevada 89523

Equity Trust Company The Leader in Self-Directed IRAs & Small Business Retirement Plans

225 Burns Road, Elyria, OH 44035 www.trustetc.com

Bryan Dobro, Retirement Account Specialist

Office : 888-382-4727 Ext. 180 Fax: 440-366-3750

[email protected]






What Could Go Wrong?

1) You need your money back before the loan maturity date. You can: Wait and continue to earn interest. Ask the borrower to refinance. Sell the loan. Sell part of the loan (sell payments).

2) We are unable to make the monthly mortgage payments. You can:

Let payments accrue at a higher interest rate until the property sells or until we can resume monthly/quarterly payments.

3) Property value drops. You can:

Remember there is a 25% or more cushion built into the deal. Don’t panic. Remember history. Add an additional lien onto another property that we own. Auction off the property and get a deficiency judgment.

What kind of documents should I receive? Your closing package should contain the following:

1) An original Promissory Note. 2) A copy of the Mortgage/Deed of Trust. The original will be

recorded and then sent to you. 3) Title insurance (insuring you against any title defects). 4) A hazard/fire insurance policy naming you as mortgagee.

These documents provide you security.

In Summary

Well, we’ve covered a lot in the short time we’ve had together. We hope we have enlightened you on the awesome power of making private mortgage loans. If it appeals to you, you can get started right now. While most people are complaining about the low rates they are getting on their CD’s and other low paying investments, you could be receiving a return of 6% to 14% all of the time…

“Are you now ready to take act ion?”“Are you now ready to take act ion?”

So what’s it going to be? Are you going to continue to let other people control your money so you only get a return that barely keeps up with inflation? (These days,






most investment returns do not even keep up with inflation)...Or… are you going to take control and make sure that when you get ready to retire, you can do what you want without worrying about money, and if you are retired, squeeze every interest dollar out that you can.

Private lending is an incredible way to build wealth in a hurry that most people aren’t aware exists. Banks, brokers, and financial planners have done a great job of keeping these wealth centers to themselves. You’re not one of those people who are uninformed anymore. If you have more questions please give us a call. We would be happy to schedule a personal meeting with you so that we can answer any questions that you may have. Sincerely,

K ei th French , S h anno n French , K e i th French , S h anno n French , Z ach Fu l l e r , and Nate Gus tav s o nZ ach Fu l l e r , and Nate Gus tav s o n BuyBaltimoreProperties.com Keith’s Mobile: (410) 905-5454 Shannon’s Mobile: (410) 948-9434 Nate’s Mobile: (919) 448-5404 Zach’s Mobile: (910) 429-5217 Fax: (410) 630-7222 [email protected] [email protected] [email protected] [email protected]

Private Lending Presentation

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Transcript of Private Lending Presentation