Slide 1: Make Big Money Through Trust Deed & Private Mortgage Investing
Slide 2: How Safe is YOUR Investment Strategy?
Slide 3: Become a Safe & Sophisticated Investor Our Unique Investment Vehicles Are Strongly Collateralized For Your Safety, Offer Fixed Rates Of Return And Average Over 12% Per Annum. 5 0 5 -5 5 0 -6 9 6 0 Ismael "Izzy" Ruiz Investor Relations Specialist We're not an investment fund and we're not stocks. We're a proven investment strategy that is used only by the most sophisticated of investors. Quit gambling on a roller-coaster market. Call us today.
Slide 4: WHAT IS IT? What is Private Mortgage Investing? There are two primary reasons our borrower clients turn to private mortgages rather than institutional real estate funding. *First, the speed of a transaction. Unlike banks, private mortgage groups like The Equity Experts can often evaluate, arrange and close a private mortgage in days compared to weeks. *Second, private mortgage candidates may have credit issues or debt-to-income ratios that disqualify them for typical institutional loans.
Slide 5: How Does it Work? Due Diligence Investment Consummated Borrower Presents Loan Request And Collateral The Equity Experts Confirms Viability Investor Introduced To project & Makes Commitment Escrow Opened Investor Places Funds Investor Presentation
Slide 6: How Does it Work? Funds Distributed To Borrower Escrow Creates a Recorded Lien against Real property collateral Borrower Makes Monthly Payments A Third-Party Payment Collection company collects and distributes monthly interest payments to Investor(s) Principal Investment Is Paid Back Private Loan is “exited” (Pai d Off) within a specified amount of time through sale or refinance of collateral property Investor has Received A Nice Yield Secured by Real Property Investor’s Principal investment is returned for re-investment In a new, Real Estate secured opportunity
Slide 7: NO Investor Management Fees, EVER
Slide 8: DIVERSIFICATION Illustration Only: Returns are based on individual projects Loan #2 $100k Secured By Separate Real Estate 12% Yield Loan #3 $100k Secured By Separate Real Estate 13% Yield Loan #4 $350k Secured By Separate Real Estate 15% Yield Loan #1 $100k Secured By Separate Real Estate 18% Yield Offers $650k for diversified investment. Wants an average return Of at least 13%. INVESTOR Pr ivat e Tr ust D eed and Pr iv at e Mort gage Investing Pr ovide 14.66% Average Return Secured by Real Estate
Slide 9: STRATEGIES Rates are based on average returns at time of design of this presentation. Comparative Portfolio Strategies In each of the following traditional Investment vehicles, fees are charged to the Investor – except in the case of private mortgage or trust deed Investing through The Equity Experts. 4% Yield 12mo. CD Annual Return $4k 6% Yield checking Annual Return $6k 10% Yield Mutual Fund Annual Return $10k 14% Yield 12mo. Private Mortgage $14k 90% Annual Return 35% $100k $100k $100k $100k Investment Risks vs. Return *Certificates of Deposit – FDIC Insured *Interest bearing checking or savings – Rates/Return subject to change (High minimum deposits required) *Mutual Funds – Variable / Volatile *Trust Deeds/Private Mortgage – Secured by high valued real estate *Stocks – Extremely volatile
Slide 10: A Niche Market TYPES OF INVESTMENTS WE LOOK FOR: In an effort to obtain the highest returns for our investor clients, we focus on four primary areas of real estate lending: Commercial Acquisition & Refinance Construction & Development Projects Joint Venture Opportunities Land Acquisition & Refinance
Slide 11: Realistic Expectations TERM OF R ETURN: Most of our loan projects begin paying returns within 45 days of initial investment, and continue monthly until the end of the investment term. Our loan terms range from 3 months to 30 years, and are set at a fixed rate, so you'll always know how much your investment is going to make. The average loan term is 18-24 months. In the event an investor must liquidate an Investment prior to term maturity, The Equity Experts will assist you by helping to find another party to buy out the your position.
Slide 12: INVESTOR PROTECTION TEE works to Protect Our Investors at every stage of the investment process Professional due diligence on property, borrower, geographic region and equitable safety of collateral. Investor Maintains Control of Investment Funds Until Escrow Third Party payment collection, disbursements and tax record maintenance management for Hands-on loan the entire loan term by The Equity Experts at no charge to investor
Slide 13: CORPORATE DIVISIONS Investor Relations Borrower Relations Administration Due Diligence
Slide 14: Every Investment Has Risk Averages of Lates, Defaults & Foreclosures On average, every private loan will have at least one late pay in its duration; 37% of loans will enter default (meaning they are at least 20 days late before the late pay is remedied), and; 7% of private loans will enter the foreclosure process. It has been the experience of The Equity Experts that only 2% of private mortgage/trust deed loans actually make it all the way to foreclosure auction.* Will be 56% As many as Of loans 20 days late will have 37% at least one late pay *Percentages are related to loans previously or currently managed by The Equity Experts, and cannot be guaranteed.
Slide 15: The Process of Investment Recovery Borrower is 20 days late Notice of Default Mailed Borrower remedies Pmt. + fees Borrower fails to remedy TEE files 4Closure Within 30 days of late payment Borrower either remedies 4closure or property is sold at auction to recover investment In an effort to protect our investors, TEE files a notice of default within 20 days of late pay, and foreclosure within 31 days of late pay. In the event payments and late fees are not remedied, the property will be sold to recover the investor’s principal plus back interest.
Slide 16: Start to Finish How long does a private mortgage investment take to set up? • Because we've done much of the due diligence prior to presenting you with an investment opportunity, the process can be completed very quickly. Depending on three primary components: 1) You. We want you to take the time you need to complete any research and due diligence you feel necessary in order to be comfortable with the investment; 2) Escrow. The title and escrow process is out of our hands and even though we use professionals who are familiar with doing this type of transaction, they can often be “swamped” with work, delaying the process; and 3) The title itself. In the event there are “clouds” on the title, then we will make sure that they are cleaned up before proceeding with the loan - this can take time. In most cases, depending on the size of the transaction an investment takes about 2 weeks from start to finish. • • •
Slide 17: Becoming a Private Mortgage Investor How do I get started? With new projects coming across our desk daily, The Equity Experts are constantly reviewing quality projects for your investment. You just need to contact us so we can ask you a few questions, perhaps offer some training if necessary, and begin presenting you with quality investment opportunities. It's that simple.
Slide 18: How We’re Different The Equity Experts is a specialized mortgage-investment team dedicated to helping individuals, family trusts and corporations to invest in High-Yield mortgage loans with consistent returns secured by real estate - a commodity that has a proven appreciation year-after-year; even in poor market troughs. Unlike large mortgage pools or money mills, TEE allows you to keep your funds in your possession, earning you money until you discover the project you feel comfortable investing in. Why struggle with the stock-market puzzle? Invest in private mortgages through The Equity Experts and see the ease of consistent returns with valuable, trust-worthy securitization. It's the proven method of investment that banks and insurance companies use - why shouldn't YOU?
Slide 19: Disclosure Granted, like all investments, there are risks to Trust Deed investing, but our team works seven-days-a-week to protect our investor clients like no one else in the business, minimizing risk as much as possible. Not every investor is suited to invest in private first or second mortgages. Certain net worth guidelines apply. This brochure does not constitute an offer to purchase mortgage investments, it is meant as an educational resource only. An offer is made only through an offering summary and only to those who have requested to receive such summaries. Investing in mortgage or trust deed investments involves some risk, and should only be done by educated investors. Please be sure to do all necessary due diligence prior to investing. *Costs to the investor may be incurred in the event of foreclosure. Repayment of all costs to investor will be attempted through liquidation of property, but cannot be guaranteed. In the event of a second position, foreclosure of the first position may require costs to the investor in order not to lose investment
Slide 20: www.TheEquityExperts.com 505-892-7200 800-963-8065 Managing Director: Brandon Thienes Direct: 505-350-6945 info@TheEquityExperts.com