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Generating Wealth Through Private Lending

Generating Wealth Through Private Lending. SRCapitalManagement.com. Welcome to Private Lending. Disclaimer….

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Generating Wealth Through Private Lending

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  1. Generating Wealth Through Private Lending SRCapitalManagement.com

  2. Welcome to Private Lending Disclaimer… This presentation and its associated training materials are proprietary to SR Capital Management. Copies may not be made without the express written permission of SR Capital Management. The information contained in this document is subject to change and supplementation without prior notice.

  3. Welcome to Private Lending During this presentation you will learn how to… Let’s look at the agenda to get started…

  4. What is Private Lending? 1 Benefits of Private Lending. 2 AGENDA Why would a Borrower use a Private Lender? 3 How Private Lending Works. 4 Risks and the Time for Private Lending. 5

  5. What is Private Lending? 1 AGENDA

  6. What is Private Lending? Before we get into what Private Lending IS, let’s highlight what Private Lending is NOT... STOCKS • BONDS • WALLSTREET • CERTIFICATE OF DEPOSIT

  7. What is Private Lending? Let’s begin by defining Private Lending...

  8. What is Private Lending? Private Lending works just like a bank using the 3-M’s…

  9. What is Private Lending? Private Lending is also known as… Trust Deed Investing Private Mortgage Lending Private Money Lending

  10. What is Private Lending? Why haven’t I heard of Private Lending?

  11. Benefits of Private Lending. 2 AGENDA

  12. Benefits of Private Lending Let’s start by going over the benefits of Private Lending… Now we’ll look at examples of each benefit…

  13. Benefits of Private Lending Let’s take a look at an example…

  14. Private Lending Example There is a $500k house in the Southern California area. VALUE: $500k “Protective Equity” The cushion which protects the Investor’s loan during potential downward cycles. PROTECTIVE EQUITY: $175K (35%) LOAN: $325K (65%) NO MORE than 65% of the loan to value (LTV) would be lent against this asset.

  15. Benefits of Private Lending Let’s take a look at how Private Lending compares to Stocks and Conventional Banks…

  16. Private Lending Comparisons

  17. Benefits of Private Lending Let’s look at the potential for Private Lending, as well as a snapshot in history of the Stock Market and Bank CD/IRA’s…

  18. Private Lending Interest Rates 6% 12-15% 7% 8% 10% 9% Private Lending Potential Typical rates an investment could earn… • And sometimes as high as…

  19. Private Lending Comparisons STANDARD CD/IRA: Less than 1% S&P 500: Volatile/Unpredictable Data as of August 2012

  20. Benefits of Private Lending Let’s look at the potential monthly payouts based on various investment amounts and return percentages…

  21. Potential Monthly Payouts Private Lending Monthly Payout Chart…

  22. Benefits of Private Lending Let’s look at what that means…

  23. Benefits of Private Lending Short term deals (6-18 months) are desirable because… When the term concludes or the home is sold…

  24. AGENDA Why would a Borrower use a Private Lender? 3

  25. The Borrower and Private Lending A common question is: “Why would a Borrower choose a Private Lender and be willing to pay as high as 12%, or even higher, instead of using a Conventional Bank with lower rates?” To answer the question, we need to look at the benefits for the Borrower…

  26. AGENDA How Private Lending Works. 4

  27. How Private Lending Works Simple, we break it down into… THE 5 STEP PROCESS Borrower Requests Loan & Submits Documents Lender Assesses Project & Establishes Terms Investor Introduced to Project & Commits Escrow Initiated to Completion Investor Payout REMEMBER:YOU ARE THE BANK

  28. How Private Lending Works What does it cost the Investor to participate? Unlike financial institutions, e.g., Morgan Stanley, Goldman Sachs, Charles Schwab, etc. Charges No Investor Fees…. EVER! SRCapitalManagement.com

  29. How Private Lending Works A typical investment…

  30. How Private Lending Works How is the investment protected?

  31. How Private Lending Works How does the Private Lender make money? It’s simple… The Private Lender collects a spread between what is collected from the Borrower and what is paid to the Investor.

  32. AGENDA Risks and the Time for Private Lending. 5

  33. The Risks & Mitigations Every investment has risk…

  34. The Risks & Mitigations Every investment has risk, continued…

  35. Time for Private Lending The timing and conditions for Private Lending are ideal… The “Perfect Storm” has been created by current economic challenges…

  36. Time for Private Lending What are the next steps? David Stromswold949-929-7355david@srcapitalmanagement.com SRCapitalManagement.com

  37. Thank You!

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