Generating Wealth With Private Lending
Sperry & Sons Capital
Investments
Agenda
Today, We Will Discuss:
Earning High Yields
Secured by Real Estate
While YOU Stay In Control of YOUR Money
& Receive MONTHLY Payments
What Private Lending Is NOT!
What is Private Lending?
“Private Lending" refers to a private individual making a loan to another
individual with real estate as collateral.
You Are The BankYour Name Is On The Note and Deed of Trust
“Private Lending" refers to a private individual making a loan to another
individual with real estate as collateral.
You Are The BankYour Name Is On The Note and Deed of Trust
Why Haven’t I Heard of This?
Benefits of Private Lending
• Secured by tangible property
• Safety - low risk – As long as there is value in the property, your
investment is secure
• Great returns
• People are familiar with real estate investing because real estate ownership is so common.
• Receive monthly payments
Basics
• Let’s assume we have a $500k house in the San Francisco Bay Area…
VALUE: $500k
LOAN: $300K (60%)
PROTECTIVE EQUITY: $200K (40%)
We lend NO MORE than 60% of value…
This is our “protection” - our cushion…
Why Would Someone Pay That Kind Of Interest…?
IMAGINE THIS SCENARIO:
You get a chance to buy a property worth $500,000, in today’s market, for $250,000.
You have 5 days to close.
The bank will only accept cash.
Do you care if you pay 12% for 6 months if you can CLOSE on the deal?
Someone WILL Pay Because…
• Immediacy: Access to capital much faster than conventional lender.
• Asset Based Underwriting: Borrower qualifications can be subordinate to the value of the property.
• Timeliness: Conventional lenders are not fond of short term loans
• Improvement Costs: “Rehab Loans” can include the cost to improve the property, increasing equity
• Number of Loans: Traditional lenders limit number of loans
Our BrokerServices
Loan. You Receive
Monthly $$$
How Does It Work?
5 STEP SYSTEM
Borrower Requests Loan and Submits
Docs
Our Broker
ConfirmsViability
InvestorIntroduced
To Project & Makes
Commitment
EscrowOpened & Investor Places Funds
Remember: YOU ARE THE BANK
What Does It Cost Me?
Typical Investment
• 60% LTV
• 6 months to 36 months
• 1st Deed of Trust
• 7-10% Interest Rate
• 1% Servicing Fee
• Non-Owner Occupied, 1-4 unit Residential properties (mentioned before)
• Properties within 100-mile radius of office
• Rehab Loans for Fix & Flip deals
How Am I Protected?
Every Investment Has Risk!
• Almost all loans will have at least one late payment– The investor actually gets paid more for that because
the borrower pays penalties.
• A portion will turn in “default”• A smaller portion will go into “foreclosure”• Very few make it all the way to auction. Why?
– Protective Equity!
• The MOST important number to look out for in private lending is VALUE of property
Private Lending vs. Stocks
Private Lending
• Great cash flow generator – and quickly
• Use OPE (other people’s experience)
• Use OPT (other people’s time)
• Passive income• Relatively secure• Higher returns than stock
market
Stocks
• Not good for cash flow• Based on demand and
supply – beyond your control
• S&P 500 Lower returns• No collateral
In Summary
Private Lending is still one of the relatively safest investments you
can make, offering you a high return with consistent, monthly
cash flow.
Conclusion
Do you know someone who would like to take advantage of one of the greatest opportunities in our lifetime
with low risk and high returns?
Contact: ---
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