fox valley property solutions private lender p
DESCRIPTION
Private lenders wanted for the purchase and rehab of residential properties. Tired of earning 1 or 2% on CD's and getting sick of the volatile stock market? Earn 10-12% on an investment secured by real estate.TRANSCRIPT
12/01/09
Private Mortgage Investments
High Yield Investments
Secured by Real Estate
12/01/09
Private Mortgage Investments
Paul Tomlinson President
Fox Valley Property Solutions, LLC
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DisclaimerPlease carefully consider Fox Valley
Property Solutions, LLC's investment objectives, risks, and associated costs or
expenses before investing. Real estate investments are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and ask for more information before you
consider any investment.
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Agenda • Private Investor Program
o 1st Mortgage Program• Company Overview
o Historyo Dream team
• Questions
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“More millionaires have created their wealth
through real estate than any other endeavor”
Andrew Carnegie
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Private Investor ProgramOverview
• We currently buy and sell 2-3 properties per year
• To fund our deals we generally borrow money from banks at 70% to 80% of value
• Or we borrow 100% of the purchase price and rehab from private individuals
• We pay private investors 10% for 1st mortgage money
• We typically make use of your money for a 4-6 month period until the property is rehabbed and sold and then move on to the next property.
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Private Investor ProgramHow it works
• We use our marketing program to get potential sellers (FSBO) to call us or have one of our team members (realtor) find below value properties in MLS
• We negotiate to buy a house that is typically 30% to 50% below market
• We close through a title company with your funds
• At the closing you get a mortgage and insurance as security
• We make payments to you on the pre-determined scheduled dates
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Private Investor ProgramGuidelines - 1st Mortgage
Program
1st Mortgage Program1.$50,000 minimum2.Up to 70% LTV 3.10% Interest4.Numerous payment options (monthly,
quarterly, after property is sold, etc...)5.One Point (1%) upfront fee to you the investor
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Private Investor ProgramPayments Options
• You get 10% simple interest on your invested capital
• We can pay you any of the following ways:o Monthly o Quarterly o Semi-annually o Annual o No Payment Accrual Program (split profits)
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$100,000 Investment ExampleOne Year
Yield 12 Month Return2.0% CD $2,000
10.0% Private Investor $10,000This is a 500% increase in return
to you the Private Lender
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Our Target Property• Average Purchase Price $50,000 - $120,000• DuPage, Kane, Kendall, or Will County • Repair Cost $8,000 – $45,000• Typically 2 to 3 bedrooms and 1.5 baths• Time to renovate and sell is approximately 120
to 180 days• Typical Loan is $50,000 or $500 per month
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People Who Sell Us Houses
• Foreclosures and Short Sales (60%)o Bankso HUDo VAo Freddieo Fannie
• Private Individuals (20%) • Wholesalers (20%)
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How Do We Protect YouThe Investor?
• We purchase properties using a strict formula: After Repair Value * 70% minus repairs = our Maximum Allowable Offer
• We walk through the property and determine the repair cost per room and use a “fudge” factor to ensure no cost overruns
• We extensively market the property and offer incentives to the buyer for a quick sale
• As always, we invite you, the investor to come visit the property anytime
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Three Documents SecuringYour Investment
• Promissory Note signed at time of investment by Fox Valley Property Solutions LLC - Paul Tomlinson
• Recorded first or second mortgage• Certificate of insurance naming
you as additional insured
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Your BIGGEST ConcernProtection of Principle
• 1st Mortgage Program – we never borrow more 70% Loan-to-Value
• We typically buy 25% to 40% below market• We then build in equity by rehabbing the
property ($8,000 to $45,000)• We market the property in ten different ways,
using a combination of the internet, flyers, videos, neighbors, postcards, birddogs, MLS, etc...
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Compare Private Lending Versus Hard Money
LendersPrivate Lender Hard Money10% to 12% 15% or HigherOne Point Fee 5 to 10 PointsNo Credit Check Credit Score 600+ Short term 6 to 12 MonthsNo Back End Fees 2 to 5 Point BackendTotal Cost < 13% Total Cost >25%
This Is Why We Use Private Lenders Versus Hard Money Lenders
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Can We Accept IRA Money?
• We can accept loans form IRA & Roth investments
• We Recommend Equity Trust Company as the Third part Administrator
• Located in Elyria, Ohio• Allow self directed investments in real estate
from both an IRA or ROTH account
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Agenda • Private Investor Program
o 1st Mortgage Program• Company Overview
o Historyo Dream team
• Questions
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Fox Valley Property Solutions , LLC
• We are a Limited Liability Company• Our Team: • Creative financing• Realtor• Rehab• Marketing• Buy low – rehab – sell with incentives• Win-Win
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Fox Valley Property Solutions, LLC
Who Is Paul Tomlinson?
• 44 Years Old• Married 8 Years – Amy Tomlinson• Home – Montgomery, IL• Bachelor or Science – Southern Illinois
University (1990) – Finance
Purchased and rehabbed properties in Aurora, IL and Woodridge, IL in 2008. Purchased and rehabbed properties in Bolingbrook, IL and Aurora, IL in 2009.
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Company Story• We started in 2005 with the purchase of a
single family home in Carlsbad, NM • We continued purchasing out of state
properties in Ohio and Texas and learned the tools of the trade in creative real estate by structuring lease options, land contracts and a Sub2
• Within the past few years, we've decided to stay in our own backyard and purchase properties to rehab
• Our goal is to grow the company to buy and sell 6 properties in 2011
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Company Story, continued
• The company is a for-profit Real Estate Investing Company
• We acquire, rehab, and sell residential real estate
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Organization ChartPresident
Private Lender?
Marketing Specialist Rehab Specialists Property Manager
Realtor
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Competitive Advantage• Our competitive advantage is speed to
purchase a property and knowledge of creative real estate techniques
• That speed comes from knowing we have private funds and the ability to pay cash and close quickly
• We are very focused in a small geographic area and know the values in our market much better than the sellers and, in most, cases than our competition
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How to find us
• Mailing Address: 102 Boulder Hill Pass Montgomery, IL . 60538
• Web Site: www.foxvalleypropertysolutions.com
• E-Mail: [email protected]
• Cell Phone: 630-927-2751
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Our Website Brings Leads
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Questions ???
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The Next Step ?• By now you know how this program
works and how you can earn 10% starting today
• Sign up today for a private meeting• Visit our website at
http://www.foxvalleypropertysolutions.com/earn.html and fill our Private Lender form