Session 15 - Attract Private Capital: The Simple Presentation for Note Investors

Alrighty. So I wanted to put together, I have put together this in the past, but I wanted to share with you a simple presentation, which. Kind of funny, I saw somebody using almost the same presentation in a group that I admire, I respect. Okay. Some friends of mine, Crystal and Rick Rumer, they raise capital, they buy a lot of land, like 100 acres, and they split up into 10 acre slots and they use private capital to help fund the purchase and then they owner finance it and sell the notes off or bring in other investors to buy the notes from them. They kind of rinse and repeat. They're basically formulas. They buy an anchor at five bucks, you know, five, eight bucks. They're selling it at ten. Owner financing. Right. But that's kind of, kind of works with. So it gives them the flexibility to give their investors a 12% return or more and go from there. But this I saw, I think I was them. I saw them using a couple slides out of one of the things that's like, well, they're using this kind of same thing. So this is actually a presentation that we've used for a long time. And I. It's, it's an easy way to explain to people how to become a private money investor. Okay. Now I know that some of you, I think it's better to target existing real estate investors because it's going to be a little bit easier explanation. But for those of you that are out talking to other clouds, B and I group, and they don't know how to start investing with you, you know, this might be a great presentation for you to put together or give this presentation for a few minutes and then attach your pitch deck on the backside and have that rotate through a couple times using restream to rebroadcast across your stuff. And it works like a, kind of like an infomercial. Okay. And you know, one of the longest running things that I go back, it's been a few years now, but September 30th is international podcast day, and then June 30th is international social Media Day, something like that. And I have some friends, Christy Whites and Elijah White's a great couple, our best friends really. They live up in Belton, but they used to live here in Austin. They used to do a lot with social media, international social media. And they got the city of Austin and the mayor of Austin to, you know, June 30th was international social Media Day. And they did an event and they had about 20 speakers one year. Well, the next year I said, well, they were going to do an in person event. So why don't we do something online? I said like, why don't we set ourselves apart? So why don't we do like an all day event? I was like let's do something different. Let's do a 27 hour, let's do a 24 hour day live stream. And it came to me from there's a the series with Kevin Spacey called House of Cards on Netflix, right. With Robin Wright pen in there. And there's the competitors. A guy that's running against Underwood before Mary's a young guy, ex military. Well, he holds a 27, you know, 24 hour day live stream asking questions of the public on YouTube. It's like wouldn't that be kind of great to do a whole like 27 out? You know, we could do it from midnight on the east coast to midnight the next night on San Francisco. So it's 27 hours straight. Not just 24, 27 hours. So we had like I'm not joking, close to 30 different presentations lined up, guest speakers for the full 27 hours. We got about a 250000 views on Facebook Live. Because we were doing it through Facebook Live and we had to stop it every eight hours. Let the whole restream reset, stuff like that. But we had so many presentations. People talk about of right things on how they use it for social media. So that's what made me think if you start putting this with your pitch deck, explaining what basic stuff is are to, you know, to the knowledgeable people, you kind of hit both sides in a 15, you know, 15 and 15 or 12 and 15 time slot where it could go for two to three hours and see how it goes. We're going to test that theory because I, we've done things like that before and it works well and we're going to do something kind of cool here the first of the year to do this. But anyway, so this is just a simple presentation you would give to potential real estate investors maybe who have a 401k or have retired or maybe have a 401k from a job. How they can become a private mortgage lender and how they can earn some securely earned double digit interest rates. Okay, so let's go about this. All right. So once again, thanks for taking time. I know you explained express some interest in learning more how to become a private mortgage lender with us on some of our deals. And this is a simple presentation we want to go through with you. Okay. And it's basically cover four parts. What is A private mortgage loan to what is a private. How does a private mortgage loan work? The three, the benefits of a private mortgage loan and obviously the most important thing number four, how the heck do I get paid back? Right? So first part, what is the private money? It's a mortgage loan funded by either private individuals or somebody using retirement accounts. So 401k, an IRA, a self directed IRA, stuff like that. And what's great about it is a private mortgage loan, when you lend money, you become the lender. It produces predictable income stream to a private lender. All right, you lend me money, I can produce predictable income stream back to you. And the mortgage lien that we will be using to secure investment, provide security, protection and recourse in case something happens. Okay, now how you can invest with your IRA. We can use self directed IRAs, a 401k plan, a profit sharing plan, a KEO plan, and the income to you is either going to be tax deferred or tax free. And yes, you can use a third party custodian like equity trust to set this up with the lend that money to lend the money out of so that that profit goes in there either tax free or tax deferred, depending on what kind of plan it is. Okay, now how does it work? It's a pretty simple plan. We go out and buy defaulted mortgages, distressed mortgages at a big discount. We borrow the money from you for the purchase, legal and rehab. And the times we rehab and you're earning a double digit interest return on your money for really relatively a short period of time of 24 to 36 months. And how does you know, how does a bank make money? Let's talk about. Because you really are becoming a bank. So how does the bank make money? They take people's money, who they. And you go to your bank, you deposit money into your bank, you get a low interest rate, whether it's a certificate of disappointment, making 4% in a money market fund, making 1%, maybe 2, or in a savings account making nothing. Right? Not talk about all the checking accounts that don't make anything. You don't make anything in your bank. But you know what they're doing. They're taking and taking that money and turning around and then they're making money lending your money to other people and the bank's going to get a higher interest rate. They're arbitraging the funds, the difference. So they're giving personal loans at 9%, they're doing auto loans at 10% or whatever like that, home loans, you know, at 6, 7%, you know, they're paying you a half to 1 to 4 points depending on how much you have in there. But they're making, I'm talking about credit cards too, anywhere from two times to 10 times of what they're paying out to you. Okay. They're leveraging money and you can do the same thing you are and can become a private bank. You make a loan to us, you're earning a double digit interest rate. We buy the bank loans and you're going to fund the purchase price plus holding costs along the way because we're buying at a significant discount. All right, so how's it work? All right, so we buy the banknote here. You're going to get interest, you know, principal plus interest payments. You're gonna get your principal back plus interest on stuff like that. We can either a turn around and either sell the property of the note if we can. If I get this in the wrong order, sorry, but it starts over here. You provide. I should have put a number one on this and put the order anyway. One, you provide the financing, we buy the bank note, you're getting interest in principal. We're going to either sell the property of the note or we're going to foreclose and get a dean lieu for the borrower. There are documents that are going to secure your loan to the either the note or the property. And that's what we do, we just rinse and repeat and do it from there. Okay, now let me give you an example. Let's talk about this sample how a private mortgage procam can work for you. And this is sent on if you're saying we're going to buy and flip a home, basically. So we're proposing a loan, give you a bit of the background here that we're either going to buy a note at 70% of the balance or you're going to fund a purchase on a rehab case single family home. We're going to give you a 10% interest rate calculated on the outstanding loan balance. And the loan origination fee is a service charge by the lender for making the loan. So we're going to give you the market value of the home is 142, 143,000 loan is 70% of that is right at 100 grand. We're going to give you a half point loan origination fee and we're going to pay you a 10% interest. So if we did this, okay, the total income earned on this, all right is if we did it for a year or let's say 150 days, five months basically is in that time frame, five months, you're going to make a total of $4,166 in interest plus at half point. So you made 46, $166 on that five month period. Right? Now let's do it again, let's do it a second time for another five months. Okay? First loan is paid off for five months and we make a second loan to it. You earn another 46.66 in interest for the other five months. Another loan origination fee on the five month loan. The second loan is paid off and you made a third loan to us. Okay? So you earn another 2167 interest and a loan origination fee for the remaining two months. Total money made if we do this period relatively fast in under six months is going to be 11,499. Now let's look at that. If you put it with certificate of disappointment, certificate of deposit, and that's getting a 3% return on your 100 grand. You made 3 grand for the year. Okay with us. If we do this three times a year, or we could even calculate this once per year too, you're still going to make the difference. Here is 8,500 bucks doing a deal with us. Private lending is a far superior alternative for getting a better return on your investment. And like I said before, there are benefits. You're going to get a higher interest rate to yourself. We're going to put title insurance or make sure we have the right to buy that note or buy that property. And we're going to get you a steady income stream so that it's coming directly to you either on a monthly, quarterly or annual basis for you, okay? Now it's also the collateral provides a safety net. So like I said, the assignment of mortgage or the first link of trust puts you in the driver's seat. Okay? And these are short term loans. We're not talking 30 years, we're not talking 20 years. We're honestly talking anywhere from a year to three years on the stuff. Okay? If we get due in and out of a deal in less than, in less than a year, guess what? We can rinse, repeat, but we're always going to return your money back to you first and then go to return if you want to keep in, rinse and repeat. And that's fine. But we're always going to make sure to end one deal, give the money back, have you rewire it back or keep it and move it into a second Deal if you want to. If you don't want to do the second deal or third deal, that's fine. We'll roll the money back to you and go on. Like I said, short term loans are less risk, not a 30 year. Okay. And the principal is secure because we're buying things at such a low percentage of value of the property or percentage value of what's owed on that note, like I said, we're not using to go above 70% of the fair market value of the house. Okay, now how do you get paid back? Like I said before, we're going to pay you. I would change this up monthly or quarterly interest paid as required. Otherwise total interest income is paid at close. If we're buying a performing note and they're paying on a monthly basis, guess we'll pay you back there. They're not paying. And what we're going to do is give you the entire principal due on the loan paid at the end of the mortgage term or when the house is sold. All right? So you're going to either get monthly payments, it is a performing note, or we're going to give you all your interest on the face amount of what you borrow back when we sell the asset. And like I said, we don't usually do monthly payments unless it's a performing note. I used to prefer quarterly. You might even change this up a little bit, tweak this up where it's a quarterly payment, biannual or, you know, quarterly biannual or lump sum at closing aspect of, you know, annual payment or lumps at closing. There's some different things that will provide an income stream to you with a payment schedule for you that's due so we know you're getting and that's what we want to leave it with. Does a private loan sound right for you, ladies and gentlemen? Okay. If you'd like to find out more information. Love to chat with you. We've got a couple case studies that we're working on right now to get the ball rolling. And let's talk. Okay, but pretty simple presentation. I think anybody here could give that presentation. Tweak it up a little bit more for your slides. Any comments, questions, concerns on that? So like that was about 15 minutes to do that. If I started right at and came back at 3:15 my time. This is 3:33. Took me probably about five minutes on there. So 15 to 18 minutes to do that presentation. You figure about putting that with two or three case studies. Here's a kind of couple deals that we've Got rocking and rolling for you can work very well, right? It's a good deck. Yeah, exactly. Judy, you got access to this already? It's already. It's in the WCN membership base camp group for you. All right. And that can move it over to your, your one on one coaching deck too if you'd like. Okay. But that's a pretty easy slide to go through. You could even maybe on your website. Hey, hey, what's a. How's the private money investment work for you as one little short video and then your pitch deck about what we do at, you know, we close notes what we do at Jay Spencer. So the base camp group, how do you get access to the Jay? You've either got it a b, a one on one coaching student, have access to it, a part of our monthly membership at 97amonth. I can send you a link for that, get signed up for that. That's going to get you repeat access to our workshops, our replays, money, morning money, noon coaching calls that we do with our members. We upload tapes to that as well. It's really good stuff. You get a free month of it too when you're a paid member of the class. So we'll add it to you here once we get finished with the class on Sunday. And you'll have a month to see what's going on with that. And then after that you can a stay a part of it go from there. But I want to share with you a couple special dates. All right. This is something that you want to take a look at. All right now for those that you that are here already, I want you to look at your calendar and we want to fast forward to february. Twentieth, 21st and 22nd, the weekend after Valentine's Day. Okay. Now if you're watching this online, great. You definitely want to take a look at February 20th. Okay. Because that's going to be our next live workshop and live, I mean in person here in Austin, Texas. All right. Now here's the great thing. If you're already signed up for this class and you pay to be a part of it, I'm going to comp you into that class for free. No additional cost for you. Okay? Just you get down to Austin. There'll be the hotel I can see from where I'm at right here for you guys. Great. Hotel Courtyard by Mar. We can send the link out for you, but it's the February 20th, 21st and 22nd. We'll probably have a happy hour the 19th. That's our next in person class that's gonna be here in Austin. And we like to keep our classes about 50 people or less. So that's the number of tickets. Once we hit 50, it's sold out. And every time we've done a class, a live class for the last couple years, because we've been doing them online for years, we do a lot of in person classes. Okay. And what was I gonna say? And they would always, we'd always be filled, we'd always be full. It's a great time networking. We change some things up. You got network with other students. We do a lot more case, individual deals, case studies, stuff like that, but that's included. Now Steph didn't want me to allow that, but we had those that signed up for this class here. Now also, if you're already a one on one coaching student, you get a ticket to this class as well. All right? Now if you are in the WCN membership and I'm going to put this out there and you've already taken our class, it's just what you know, you can't just sign up for the WCN members, you've got to take the class and then sign up for the monthly membership there for you afterwards. You'll also get a discounted ticket to it as well. And we'll put that in the basecamp group for you as well. But normal tickets for that are going to be right at 997 for the in person class. So for you guys, you can come that signed up for the class can come in at no additional cost or one on one coaching students, you come at no additional cost. You always get VIP access to that to you. And then if you're a WCN crew member, you get a discount off that as well. It won't be 9.97, but it won't be like 97 bucks either to attend the in person class. And we probably do it somewhere around 4:50 or something like that for you to have access to it. So like I said, February 20th, 21st and 22nd. We just secured the spot, the hotel for that. We're probably going to do two in person classes at here in Austin this year. Two live in person folks are asking it. And then we're probably going to even shoot for a networking Mastermind weekend somewhere probably around June, before July 4th, or if it doesn't hit before July 4th, we'll do it probably the end of July as well for folks. So something to keep in mind on your calendar, people ask me, hey, when will you do in the next in person class. And we just got word late yesterday that our time is we want now we don't want to do it Valentine's. Last year we did Valentine's Day. It was great. We don't want to do it on the 7th or 8th because that's the super bowl weekend. Right. So we bumped it out 20th, 21st and 22nd. Usually we're clear of any ice or storms or anything going on here in Austin, Texas. So market calendars. We'll shoot a link out there for you to RSVP or spot and we'll get rock and roll for you on that. So we're excited about that. That's going to be something fun. And we'll probably be doing more live classes here in the new year as well. Like I said, we'll be doing our Note Mastermind event middle of the year in the summer probably here in Austin to begin with and then roll it out, see who shows up and who wants to go through other events. But anyway, let's dive into something else and fun for you guys. Is that okay? Can I get thumbs up? Anybody excited about that? I know I am, especially for a lot of folks in cold weather. Probably want to get the heck out of a cold spot and come to place maybe a little bit warmer here in Austin, Texas, to get some good barbecue, maybe a little bourbon and some fun. Dive into the notes stuff. All right, let's move on.