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Christopher Yates - President

Christopher Yates - President. www.cmyatescapital.com. Disclaimer.

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Christopher Yates - President

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  1. Christopher Yates - President www.cmyatescapital.com

  2. Disclaimer This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and fully understanding such documents. CM Yates, Inc. and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This presentation should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.

  3. What Does CM Yates Do? • CM Yates locates a property to buy at a significant discount below market value. • CM Yates borrows funds from private investors to purchase and renovate the property. • CM Yates sells the property for profit or holds the property for cash flow and potential appreciation.

  4. How Can We Buy Houses So Far Below Market Value? • We specialize in distressed properties that usually need renovation. • We know where to look, what to buy, what NOT to buy, and how to renovate. • We create value by purchasing ugly, vacant homes and turning them into attractive, functional, family homes.

  5. Actual Case Study • Joe moves his retirement account to Entrust New Directions Roth IRA • Joe applies to become a Private Lender at www.cmyatescapital.com • Joe receives company updates and announcements of available private notes.

  6. Actual Case Study • Joe calls or e-mails CM Yates with interest in a specific note, or inquires if a note is available with their preferred terms. • Joe selects a note that meets his criteria and requests to be the lender on the note.

  7. Example Note Terms • ARV (After Repaired Value) = $160,000 • Note Amount = $100,000 • LTV (Loan-To-Value) = 62.5% • Term = 1 Year • 1st Position Note • Points = 1.5 • Interest Rate = 12% • APY (Annualized Percentage Yield) = 13.5%

  8. Investor Options • Interest Payments • Monthly • Quarterly • Annual (for terms longer than 1 year) • Accruing • Custom

  9. Investor Options • Rehab Escrow Account • Tax and Insurance Escrows or Pre-Payment • Longer Term Notes • Junior Position Notes • Non-Retirement Account Funds • Additional Information • Property Tour • Scope of Work, etc.

  10. Example Project Purchase Price: $71,000

  11. Pre-Renovation Interior Photos

  12. Steps To Fund The Deal • CM Yates prepares Note and Deed of Trust • CM Yates pre-fills Entrust Direction of Investment forms for Joe • Joe reviews all documents for accuracy and approves • Joe faxes signed documents to Entrust • Entrust wires funds to title company • Title Company funds deal

  13. Steps To Fund The Deal • Title company records Deed of Trust • Title company sends Note to Entrust • CM Yates begins renovation • CM Yates mails interest payments to Entrust for deposit into Joe’s IRA account

  14. After Renovation After Repaired Value: $160,000

  15. Before & After

  16. BeforeAfter

  17. BeforeAfter

  18. How Can CM Yates Stay in Business Without Selling Most of Its Homes???

  19. Initial Deal Structure • CM Yates Purchase Price = $71,000 • Estimated Renovation Budget = $18,000 • Closing Costs = $500 • Pro-Rated Taxes and Insurance = $1,000 • Total Cost Basis = $90,500

  20. Initial Deal Structure • Investor Funds: $100,000 • Lender Fees: $1,500 • CM Yates Cost Basis: $90,500 Remaining Funds = $8,000

  21. Joe’s Earnings After One Year • $100,000 Principal Invested + 1.5 Points = $1,500 + Interest @ 12% = $12,000 = $13,500 Earned in 1 Year 13.5% APY • Secured by Deed of Trust • Insured by Hazard Policy

  22. Now What? • CM Yates sends a pay-off check to Entrust for credit to Joe’s IRA Or… 2. CM Yates offers Joe an extension for a longer term

  23. What happens if my Note matures and CM Yates is not ready to fund my payoff? • Multiple Exit Strategies • We can offer you a Note renewal. • We can re-finance your Note with another lender. • We can bring in a credit partner to re-finance . • We can sell the property quickly at a discount to another investor.

  24. CM Yates in the News • Personal Real Estate Investor Magazine November/December 2008 Issue“Assured Returns by the Numbers” • MSNBC.com “New Breed of Investor Looks to Housing Market”http://www.msnbc.msn.com/id/27518326

  25. How To Contact CM Yates www.cmyatescapital.com Toll Free: 1-877-8-CMYATES This is not an offer to sell securities. Any person, entity, or organization must first be qualified by the company and read all of the offering documents and attest to reading and fully understanding such documents. CM Yates, Inc. and its affiliates are not licensed securities dealers or brokers and as such, do not hold themselves to be. This e-mail should be construed as informational and not as an advertisement soliciting for any particular purpose. All securities herein discussed have not been registered or approved by any securities regulatory agency in accordance with the securities act of 1933 or any state securities laws.

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