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Page 1: The Aria Group Pitch Deck (ms word)

GROUP

Page 2: The Aria Group Pitch Deck (ms word)

Contact : THE ARIA GROUP Telephone : (949) 910-2940

Email : [email protected]

Website : www.CROWDpad.co

FOR IMMEDIATE RELEASE

August 13, 2013

THE ARIA GROUP CREATES CROWDpad LLCAvailable to Passive Investors Nationwide

Beverly Hills, California (PRWEB) February 18, 2013— THE ARIA GROUP has served Real Estate Investor clients for many years and the addition of the CROWDpad LLC Real Estate Investment Program is a natural progression. Now, in addition to offering superior Real Estate legal, transaction and compliance services, THE ARIA GROUP will also provide clients with Passive Real Estate Investment Opportunities nationwide.

“Our vision of making real estate investing simple, providing investors with more transparent access to passive investments, and reducing check sizes way below$50k or $100k for a single investment has become a reality.”-Paulina Ghaneian, CEO, The Aria Group LLC.

Passive real estate investing can be incredibly quick. Investors perform due diligence, sign legal paperwork online and transfer funds almost immediately. THE ARIA GROUP has properties secured with existing tenants where there is existing cash-flow. Investors begin receiving dividends month one.THE ARIA GROUP is the premier full-service, mortgage investigation and discovery firm in the United States specializing exclusively in mortgage origination, securitization and assignment compliance and offering a full suite of services to support Realtors, Law Firms and Real Estate Investors. Our professionals have years of experience in finance and mortgage banking, consisting of subject matter experts, attorneys with considerable compliance experience, former regulators and former S.E.C. compliance executives who have created comprehensive auditing, discovery and document systems designed to yield the quickest and most favorable results to our Investor clients and the Realtors and Law Firms that

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represent them.

If you would like more information about the CROWDpad LLC Real Estate Investment Program, please contact THE ARIA GROUP at 949-264-2022 or email at [email protected]

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In the past, HOA foreclosures were relatively rare since the property being foreclosed upon by the HOA usually had equity and an owner would cure the default of the lien prior to letting the home go to foreclosure by the HOA.

Since the housing crisis began, HOAs have found themselves in a difficult situation in regards to foreclosures because most of the homes where the owner let the HOA foreclose didn't have any equity in them because the owner owed more money on the home than it was worth. So if the HOA foreclosed they would be the owner (in most cases) of a property subject to a first deed of trust that owed more money than the HOA could sell the property for leaving the HOA now upside down in the property with no way to recoup their losses.

However, THE ARIA GROUP has recently found that purchasing HOA past due amounts (arrearages) directly from the Associations, even if there is more money owed on the property than it is worth is a good investment since the lenders who are owed the money on the first do not value time. Therefore, ARIA investors, or potential owner/occupants, can buy occupancy or control of a property and either rent the property out or live in the property while the lender goes through the extremely slow process of a bank foreclosure.

Many times, ARIA will work with lenders to come to some sort of an agreement for a purchase and even if they cannot come to an agreement the investor recoups their money plus a large profit waiting for the bank to finish their foreclosure process. THE ARIA GROUP has been successful in delaying foreclosure for clients for years in most cases.

Remember, ARIA is not obligated to pay the loan that is owed against the property nor is there any negative ramifications to our investor’s credit.

4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022 fax (888) 818-

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6524www.CROWDpad.co [email protected]

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4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022

fax (888) 818-ww i

C an H O A Forec l o s e Y o ur C o n d o ?

Homeowner associations, or HOAs, have the legal right to foreclose on a condominium unit in California. These associations are generally composed of a board of members that oversee all the matters affecting the condominiums and surrounding property. An HOA can only foreclose, or use legal proceedings and regulations, to take back ownership of the unit if the unit owner is delinquent on any fees or assessments the association is allowed to charge according to the governing documents the HOA is using.

General Notice to Owners

All HOAs in California are required to provide the owners of each unit in the condominium documentation, annually, of operating, maintenance and repair expenses, according to section 1365 of the California code. These reports must also include a summary of the procedures the association uses when collecting past due assessments or fees. If the HOA does use foreclosure proceedings in cases of overdue payments, the policies the association uses for informing the condominium owner of the impending legal action and a general outline of the foreclosure process has to be noted within these papers.

Fees and Assessments

HOAs are allowed to collect maintenance fees and special assessments for services used to maintain the condominium buildings and common elements, or areas that all unit owners are allowed to use, such as a recreation center. Per 1366(a) of the California code, these assessments cannot be changed after the beginning of the fiscal year without the approval of at least 50 percent of the members of the condominium. The assessments cannot increase more than 20 percent each fiscal year. Assessments and fees are considered delinquent when more than 15 days past due under section 2924b of the California code, unless the written policies of the HOA allow for more time. Once the assessments are delinquent, the association can start foreclosure proceedings.

Procedures

According to section 1367.4(b) of the California code, HOAs can use either judicial or non judicial foreclosure in California. Judicial foreclosure involves the associations taking the unit owner to court and obtaining a judgment of foreclosure, which can result in the public auction of the unit. Non judicial foreclosures are done without court action. The association must mail notice to the unit owner and follow all state laws. Once the period for the unit owner to object to the action has passed, which must be a minimum of three months from the date of the notice, the HOA can sell the unit at auction.

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4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022

fax (888) 818-ww i

Requirements and Limitations

HOAs can only initiate foreclosure proceedings if the past-due assessments total at least $1,800 before any interest, late penalties or attorney fees are included, or if the fees are more than 12 months overdue under1367.4 (b) of the California code. The association cannot levy any assessment that is more than the amount necessary for the service to which the fee applies. Thirty days prior to starting the foreclosure process, the HOA must send the unit owner an itemized statement of the past-due fees, the method of calculation used to determine the unit owners charges and an overview of the lien enforcement process by certified mail.

Rights of the Owner

The unit owner has the right to request and receive a meeting with the board of individuals who govern the association upon notice of the action to foreclose per section 1367.4(b)(1) of the California code. The unit owner can also dispute the assessments. This process is initiated when the owner sends a written letter to the HOA, indicating that he is disputing the amount being collected. If HOA will not lessen the amount of money owed after meeting, the unit owner can request that a third party review the matter, and the association is required to participate in this mediation under California law. The unit owner can also request that the HOA consider a repayment plan to satisfy outstanding assessments.

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D o e s an H O A Forec l o su r e D e e d S u p e rs e d e a F i r s t M o r t g a g e D e e d?

A community establishes a homeowners association (HOA) to govern what can and can't be done in the community. In addition, an HOA determines the rules for community use of commonly shared or owned property. If you have an HOA and fail to keep up with dues you owe to it, the HOA can foreclose on your property. When an HOA successfully forecloses your property, it becomes the new owner responsible for any mortgage payments.

HOA Dues

If you belong to a homeowners association, you have a duty to pay your HOA dues. In turn, homeowners associations have a duty to collect member dues. HOAs are accountable to all members of the community served by the HOA. Homeowners association dues go to pay for things like grounds upkeep and community pools. In certain cases, HOAs are also very quick to take action if even one payment is missed.

HOA Foreclosure

Where allowed, homeowners associations typically seek foreclosure through non-judicial means. California, for example, allows HOAs to foreclosure non-judicially, or without the courts, for unpaid dues. However, California HOAs can't foreclose until the debt for the dues reaches $1,800 or the debt is at least 12 months old. In most states, including California, when an HOA forecloses a property, it becomes the new property owner. Because the HOA is the legal property owner, it's also responsible for any mortgage payments.

HOA Deeds

When a homeowners association successfully forecloses a property, it receives a deed that still contains all other liens. In order for an HOA to sell off a property it foreclosed, it would have to satisfy all senior liens on the deed. Senior liens on a deed include mortgages (first, second and so forth). HOAs often foreclose a property and try to sell it quickly, settling any deed liens in the process.

Foreclosures and Redemptions

Foreclosures by homeowners associations for small amounts of unpaid dues do occur. Also, mortgage lenders have been known to foreclose against an HOA that's foreclosed and taken a property for unpaid dues. You can stop your HOA from foreclosing on your property for unpaid dues by paying them at any time. Lastly, certain states like California feature HOA foreclosure redemption periods. California's HOA foreclosure redemption period for homeowners is 90 days.

4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022 fax (888) 818-6524

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www.CROWDpad.co [email protected]

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4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022

fax (888) 818-ww i

The F H A Gu i de li n e s f or H O A L i ens

The Federal Housing Administration (FHA), a part of the Department of Housing and Urban Development, writes mortgage insurance policies on home loans in the United States, giving lenders protection in the case of homeowners defaulting on their loans. Lenders must meet FHA requirements to be eligible for the mortgage insurance program. They also must follow FHA policy on condominium title transfers that occur after a condo Homeowner Association (HOA) puts a lien on a property for non payment of HOA fees.

HUD Mortgage Letter

HUD set out new FHA guidelines for HOA liens in a June 2012 mortgage letter to lenders issuing FHA approved mortgages. The letter referred to changes in policy regarding title transfers on condo properties that have HOA lien. It was the first such policy change from HUD since 2002.

Borrower Responsibility

HOA fees are not items that are paid from an escrow account for FHA insured mortgages. The FHA considers payment of HOA fees the sole responsibility of the borrower.

Default Scenario

In case of borrower default and subsequent foreclosure proceedings on an FHA insured mortgage, the FHA requires lenders to name and serve the HOA as part of foreclosure proceedings to dismiss or reduce HUD's liability for overdue HOA fees. The lender pays any outstanding HOA fees upon completion of a foreclosure sale. Lenders must protect HUD's interests in the case of any condo HOA bringing foreclosure proceedings where a mortgage backed by FHA insurance is involved. HUD requires all HOA liens to be removed before it takes over title on foreclosed condos, effectively leaving the lender to either negotiate removal of fees or pay them.

Lender Fee Recovery

HUD repays lenders for HOA fees occurring between the foreclosure date and the date of title transfer to HUD, as well as interest and penalties run up by the former condo mortgage holder.

Effects on Condo Owners

For condo owners being foreclosed upon, the HOA has a legal right to attempt collection of unpaid fees from you. They may bring legal action or refer the matter to a collection agency. For buyers of foreclosed condos, the issue of unpaid HOA fees is settled prior to purchase. Buyers should investigate the financial state of the HOA before buying a condo.

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4000 Birch Street Suite 101 • Newport Beach • California • 92604 (949) 264–2022

fax (888) 818-ww i

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ACCESS TO PRE-VETTED INCOME GENERATING REAL ESTATE OPPORTUNITIES

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4000 BIRCH ST. SUITE 101 • NEWPORT BEACH • CALIFORNIA • 92660 • T-(949) 264-2022 • F-(888) 818-6524

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Insider access to pre-vetted income generating real estate.

Pool money with like-minded investors to make investments that are otherwise difficult to access.

Join Select Earn

Simply fill out the application form Choose from a portfolio of investment Receive monthly dividends from

onlineand get access to investment

opportunities within seconds.

classes and select the one that meets

your investment needs.

the cash flow of our income

generating assett classes

Manage and track how your money is performing.

See up to date information on how your money is working for you.

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© 2013 The ARIA Group

Income Generating Real Estate,

the simple way

Ho w it Wo rk s .

CROWDpad allows investors to become shareholders in income generating real estate opportunities that were historically difficult to

access. Through the use of the CROWDpad web platform, investors can browse and screen real estate investments opportunities, view details of

an investment and sign legal documents online.

Cr e a t e a n a c c o u n t . A CROWDpad membership is free and gives you insider access to invest in real estate opportunities that are pre-screened by the CROWDpad team. You will also benefit from low minimums, starting at $5,000, compared to $50k - $100k for traditional real estate investments. CROWDpad is currently open to accredited and international investors. To be an accredited investor requires a minimum income and/or net worth. The sign up process for CROWDpad verifies the accreditation of its members.

Fi n a li z e y o u r i n v e s t m e n t . Once you decide which investment you are interested in, you can easily and securely sign legal paperwork online and submit payment for your investment via check or wire. CROWDpad may also request additional information to verify that you are an accredited investor.

Co n g r a t ula t i o n s . You are officially an investor and begin receiving proportionate dividend distributions the next month. You will receive frequent updates and have access to your investor dashboard to watch how your money is working for

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© 2013 The ARIA Group

you. In the event the investment is oversubscribed, the first investors who have funded their portion of the investment will have priority

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© 2013 The ARIA Group

How does CROWDpad,work? CROWDpad allows accredited investors to invest in real estate opportunities online through a private, secure website. Investors can browse investments, review legal documents and due diligence materials and sign legal documents securely online. Investors also have access to an investor dashboard, giving 24/7 access to watch how your money is working for you.

Ho w is it d i ffere n t t h a n a Real E s t a te I n v e s t m e nt T r u s t ( R E I T )?

When investing in a REIT, most investors have little to no information regarding actual properties the REIT invests in and cannot invest in their own backyard. With CROWDpad, investors can invest in individual properties giving added transparency and control over investment selection and location.

In addition, REITs are such large entities that they can rarely participate in many of the smaller investments CROWDpad will be including in the marketplace.

All properties are acquired and managed by a professional investment company with a track record of success. Investors are entitled to their proportionate share of the cash-flow from rents The average income generating timeframe for an investment is 2-5 years.

H o w do es an investme n t get l i s ted on CROWDpad?

Real estate companies request permission to list their investment opportunities in the CROWDpad marketplace by joining CROWDpad as a private real estate company and submitting an application. The CROWDpad team reviews their materials and determines whether the company and the investment is a good fit for our members. We anticipate less than 2% of investment opportunities will be showcased due to the CROWDpad vetting process.

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© 2013 The ARIA Group

What does CROWDpad do to pre -vet the investments?

We review every transaction in-house. We go to great lengths to fully understand the variables of each transaction including the structure, the market statistics, the property, the quality of the property and the track record, reputation and quality of the real estate investment company we are working with. This process includes background, criminal and credit checks to mitigate the risk of fraud. While CROWDpad cannot provide an assurance to investors that investment objectives of any given investment will be reached, only a small percentage (we estimate less than 5%) of investments we review will be included in the CROWDpad marketplace.

What are the benefits of using CROWD pad?CROWDpad makes it easy for accredited investors to invest in income generating real estate opportunities. We provide access that was historically limited and pre-vet every investment in the marketplace. We spend countless hours sourcing real estate markets so you don’t have to. We also allow you to invest in real estate with dramatically smaller check sizes. Instead of$50,000 or $100,000 minimums, you can buy shares of income generating opportunities with as little as $5,000. And we make the process painless – allowing you to screen investments online, sign legal documents online and have access to all your documents in one place on your investor dashboard.

Is the CROWDpad website secure? Yes. We go to great lengths to ensure the security of all of our members and our data and use SSL. SSL (Secure Sockets Layer) is the standard security technology for establishing an encrypted link between a web server and a browser. This link ensures that all data passed between the web server and browsers remain private. SSL is an industry standard and is used by millions of websites in the protection of their online transactions with their customers.

Wh at types of properties does CROWD pad control ?

Single-family homes and luxury high rise condominiums

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© 2013 The ARIA Group

When I invest on CROWDpad,_what d o I ow n ? When you invest in an opportunity with CROWDpad, you are purchasing shares of an LLC as a limited member. In turn, that LLC controls either a deed tied to a real property or has aUCC-1 Lien on a specific income generating property. An LLC gives you liability protection, shielding your personal assets from the investment.

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© 2013 The ARIA Group

Who m akes d e c i s i o n s in an LL C ? Decisions in an LLC are governed by a document called an “operating agreement”. While every operating agreement is slightly different, they usually include a managing member and limited members. The managing member typically makes all of the day-to-day decisions and the limited members act as passive investors on the transaction. The managing member can determine how much cash to distribute to the limited members versus how much to hold in reserve and assess possible assignments of the investments. There are certain activities that might mandate a vote by the limited members and the limited members can typically take action if the managing member defaults on the terms of the agreement or is grossly negligent.

If I invest with CROWDpad and something happens to CROWDpad, what w ill h a p pen to m y i n v e s t m e n t?

CROWDpad operates LLCs that could be managed by a replacement manager. CROWDpad would appoint an agent, such as a national bank or trust company, to manage the LLCs in the event CROWDpad is unable to manage them.

Are t h ere fees f o r i n v e s t o r s ? Joining CROWDpad and browsing the marketplace is free. Should you choose to invest, there is a fee associated with each investment. The fees depend on the type of investment (deed assignment or UCC-1 Lien purchase) and the nature of the transaction. In addition to administrative and legal expenses, the fees will cover the ongoing reporting and communications for the investments.

Wh en w i l l I g et m y in v e s t m e n t b ack?

Different properties have different expected “management periods”. A management period is the anticipated time investors will be involved with the investment until its income generating potential has been exhausted. Management periods range from less than 6 months to greater than 5 years. It is important to read the investor documents for a deeper understanding of the management period for each investment.

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© 2013 The ARIA Group

As an investor, you will receive your investment back when the management period for a particular investment expires. Investors are entitled to their proportionate share of the cash-flow from rents for the duration of the management period.

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© 2013 The ARIA Group

Why is it CROWDpad onl y for accredited investors ?

Federal securities law requires that securities issued by private companies to their investors must be registered with the Securities and Exchange Commission (SEC) unless the offering qualifies for an exemption from registration.

One exemption from registration is available if the company offers securities only to accredited investors in a private offering. Accredited Investors are defined by the SEC as having $200,000 of annual income per individual ($300,000 per couple) with the expectation of that continuing, or a net worth of more than $1 million, excluding the value of the primary residence.

CROWDpad is a private, password-protected network for accredited investors in order to meet these guidelines.

Ho w w i l l I be u p d a ted a bout m y in v e s t m e n t? CROWDpad works with the real estate management company to ensure that monthly updates are shared with all investors. Updates are provided via email and via the investor dashboard. In addition, you will receive tax documents every year that you have a distribution from a real estate investment with CROWDpad.

Is t h ere an in v e s t m e n t mi n im u m ?

Yes. The minimum investment is $5,000.

Wh at if mo re mo n ey is n ee d ed f o r t h e p r op erty?

CROWDpad investments do not have capital calls. A capital call is where the investor is required to commit more money to the property, beyond the initial investment.

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© 2013 The ARIA Group

What are the tax im p l ications of in v esting with CROWDpad?

While we cannot provide legal or tax advice and recommend you speak with your own accountant or attorney, one of the benefits of investing in Limited Liability Companies (LLCs) is that they can be taxed as partnerships and it allows for the entity to be “pass through”.Profits can be passed through to the investors, as applicable.

How does the JOBS Act impact CROWD pad?The JOBS Act was signed into law on April 5, 2012 by President Obama and is currently under an SEC rulemaking period. The JOBS Act was meant to enable crowd funding for all investors, both accredited and non-accredited. CROWDpad is not currently impacted by this act because we are currently only open to accredited investors and rely on legal structures and exemptions that existed before the JOBS act. But, we are actively waiting final rulings from the SEC and look forward to exploring how the JOBS act could expand CROWDpad in the future.

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CLOSED INVESTMENT

© 2013 The ARIA Group

MARQUEEIRVINE, CALIFORNIA

3131 Michelson Drive

$5,000 Minimum

Investment UCC-1 Lien

Security

17% Actual Annual ROI

CALIFORNIANLOS ANGELES, CALIFORNIA

10800 W ilshire Blvd.

$5,000 Minimum

Investment UCC-1 Lien

Security

16% Actual Annual ROI

Page 25: The Aria Group Pitch Deck (ms word)

CLOSED INVESTMENT

© 2013 The ARIA Group

DARK HORSEAUSTIN, TEXAS

PLAZAIRVINE, CALIFORNIA

2900 DARK HORSE LANE

$5,000 Minimum

Investment 1st Trust Deed

Assignment 9% Actual 6

Month ROI

5000 Scholarship

$5,000 minimum

investment 1st Trust Deed

Assignment 21% Actual

Annual ROI