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: ---