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NOTE INVESTING Bluegrass Capital Fund LLC

Private Capital Playbook - Group Presentation

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Page 1: Private Capital Playbook - Group Presentation

NOTE INVESTING

Bluegrass Capital Fund LLC

Page 2: Private Capital Playbook - Group Presentation

$91 BILLION LOST

OUT OF STOCK MARKET IN 2

DAYS

STOCK MARKET

YOUR MONEYWhere is it going?

September 29, 2008Market Crashes

XBluegrass Capital Fund LLC

Page 3: Private Capital Playbook - Group Presentation

www.macrotrends.net

STOCK MARKET FEARS (5 YRS)

Bluegrass Capital Fund LLC

Page 4: Private Capital Playbook - Group Presentation

STOCK MARKET FEARS (12 MOS)

www.macrotrends.net

What’s Next??Bluegrass Capital Fund LLC

Page 5: Private Capital Playbook - Group Presentation

www.SmarterIRA.com

www.DistressedVolatility.com

What’s Next??

STOCK MARKET FEARS

Bluegrass Capital Fund LLC

Page 6: Private Capital Playbook - Group Presentation

Bluegrass Capital Fund LLC

Your Wealth should NOT be on a roller coaster ride

Page 7: Private Capital Playbook - Group Presentation

WHY NOTES?

The Surge of Growth Ahead!

NOTES

Bluegrass Capital Fund LLC

Page 8: Private Capital Playbook - Group Presentation

WHAT IS A NOTE?

Bluegrass Capital Fund LLC

Page 9: Private Capital Playbook - Group Presentation

Loan Amount: $100,000

Term: 360 mos.

Payment: $878

TERMS OF AGREEMENT:

Interest Rate: 10%

Signed:

Home Buyer

Bluegrass Capital Fund LLC

Page 10: Private Capital Playbook - Group Presentation

Buyer Seller

Down Pmt:

$10,00

0

$100,000 Mortgage Lender

Loan:

$100,000

Total Purchase

Price: $110,000

Investor

Bluegrass Capital Fund LLC

Page 11: Private Capital Playbook - Group Presentation

Joe LaCountRogers, MN

NOTE INVESTOR

Bluegrass Capital Fund LLC

Page 12: Private Capital Playbook - Group Presentation

Current Market Value:

$42,000

CASE STUDY: #1

Ocala, FLManufactured Home – Double-wide with Land3Bed/2Bath, 1,368 Sq Ft.

Bluegrass Capital Fund LLC

Page 13: Private Capital Playbook - Group Presentation

Valu

e $4

2,00

0THE PROPERTY

1st Lien NoteSecured

by the Property

Buyer’s Equity+ 37 Payments

MORTGAGE NOTE

Original Loan Amnt: $33,000

Interest Rate: 10%Term: 240 months

Monthly Pmnt: $318.46

MORTGAGE NOTEPurchased For

$31,125Payments Remaining

203

Bluegrass Capital Fund LLC

Page 14: Private Capital Playbook - Group Presentation

$318

$318

$318

$318

$318

$318$318

JAN FEB

$318

MAR APR

MAY JUNE

$318

$318

$318

JULY AUG SEP OCT NOV

$64,554

203 Times =Effective Annual Interest = 10%

MORTGAGE NOTE

Purchased For

$31,125

Bluegrass Capital Fund LLC

Page 15: Private Capital Playbook - Group Presentation

$318$318

$318

$318

$318

$318

$318

$318

$318

$318

$318

$318

Buy Long Term (203 Pmts)

Sell Front (120 Pmts)

Held By SellerMotivated to be Paid Remaining

83 PmtsFront–End Investor Pays$24,063

10% Annual InterestSmaller & Short Term Investment

Seller “Backs”The Front-End Investor

Collects 120 x $381= $38,160

ENTIRE NOTE

Bluegrass Capital Fund LLC

Page 16: Private Capital Playbook - Group Presentation

120 Pmts

PARTIAL PURCHASE

Bluegrass Capital Fund LLC

Page 17: Private Capital Playbook - Group Presentation

Partial Investor Gets = $14,976Already Collected = $19,080

$34,056 5 yrs

$26,551

$14,976

Interest = 10%

EARLY PAYOFF OR DEFAULT

Bluegrass Capital Fund LLC

Page 18: Private Capital Playbook - Group Presentation

Loan Servicer

Note Owner

Pmt.

Pmt.Pmt.Pmt.Pmt.Pmt.

Pmt.

JAN FEB

Pmt.

MAR APR MAY JUNE

Pmt.

Pmt.

Pmt.JULY AUG SEP OCT NOV

Term of Note

Passive!

Does The Work!• Collects Payments • Escrows Taxes & Insurance• Licensed & Compliant• Borrower Work-out

Outsource!!

HOW TO MANAGE A NOTE

Bluegrass Capital Fund LLC

Page 19: Private Capital Playbook - Group Presentation

OUTSOURCE!Own A Note

Without Having to Manage It

Bluegrass Capital Fund LLC

Page 20: Private Capital Playbook - Group Presentation

Questions?

Bluegrass Capital Fund LLC