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Titan Capital Real Estate Fund 1

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Presentation on theme: "Titan Capital Real Estate Fund 1"— Presentation transcript:

1 Titan Capital Real Estate Fund 1
Helping Create and Facilitate Investment Opportunities Titan Capital Real Estate Fund 1

2 Introduction Titan Capital Holdings, LLC is a licensed Private Money Lender and Real Estate Investor in Arizona, Nevada and California. Titan Capital Holdings provides investors the opportunity to participate in the Titan Capital Real Estate Fund I which provides consistent above average returns secured by Real Estate.

3 Preferred Interest The Titan Capital Real Estate Fund I is proud to provide a Preferred Interest to our investors at the annualized rate of 10% secured by First Position Deeds of Trust. Our investors Preferred Interest is paid out on a monthly basis and can be reinvested or taken as monthly income.

4 The History Titan was formed in 2009 with its initial Fund which was designed to provide short term Bridge Loans to investors buying foreclosed properties at Public Auction. Titan has since expanded to provide short term Bridge and Transitional financing to real estate investors buying properties that are REO or traditional resale transactions. Titan provides residential construction financing on pre sold homes and other qualified projects and will acquire real estate that presents significant opportunities.  Since 2009 Titan has made more than 365 loans with only 6 defaults and no loss of Investors Principal. We are proud of our accomplishments. Titan is currently at $10 million under management.

5 The Vision Titan has the immediate goal to grow to $50 million under management in the markets of Arizona, Nevada and California. This projection is based on the ongoing deal flow and additional market penetration in the market places we serve as our capital platform grows. The need for short term bridge financing for real estate investors and builders is significant. Titan’s business model plans to take advantage of these opportunities.

6 Fund Architecture Offering Type: Regulation D, 506c
Equity Offering, investors are members Members receive a fully executed Operating Agreement $50 million raise $10,000 minimum initial investment Distributions paid monthly Distributions can be reinvested Liquidity: 1 year commitment

7 The Executive Team Rick Rickert – CEO
Mr. Rickert is a veteran real estate investor of the past 15+ years and has been involved in more than 2000 real estate transactions. Mr. Rickert is also a licensed Associate Real Estate Broker in Arizona. Adam Child – President Mr. Child is a veteran real estate lender, originator and underwriter of the past 24+ years and has been involved in more than 5000 loan transactions. Mr. Child is also a licensed Mortgage Loan Originator in Arizona.

8 Team Ashley Child – Licensed Arizona Originator
Glenn Michaels – Licensed Arizona Originator Kole Strebel – Licensed Nevada Originator Chip Sekhon – California DRE Licensed Broker Lisa Kartcher – Loan Coordinator Nikki Wooldridge – Controller Mark Winsor – Legal Advisor Michael Tafoya – Trustee Mitch Medigovich – Compliance Advisor

9 The Offices The Corporate home office consists of 10,000 square feet occupying the entire 2nd floor of the Bank of America building on Main Street in Mesa, Arizona. 63 W. Main St S 4th Street 2nd floor Suite 110 Mesa, AZ Las Vegas, NV 89104

10 Titan Loan Products are primarily
The Product Titan Loan Products are primarily • 6 month term – Rates16% to 18% plus fees • 12 month term – Rates 14% to 16% plus points and fees • 24 month term – Rates 12% to 14% plus points and fees • Residential Construction – Rates 12% to 15% plus points and and fees

11 Demand Titan receives more than $1,000,000 per week in qualified loan requests that fit our conservative underwriting guidelines. Demand comes from past and current clients and referrals. We possess a database of over 30,000 active real estate agents and over 40,000 active real estate investors. Titan provides education, direction and guidance on how to benefit from using Private Money Loans, through training seminars at our offices. Titan has become a preferred Private Money Lender in its market places.

12 Where we Lend and Invest
Titan focuses primarily on the metropolitan areas of: • Phoenix • Tucson • Flagstaff • Las Vegas • Los Angeles and San Diego Counties. *Titan will not typically take on loans in remote or outer lying areas.

13 Underwriting We utilize the industry standard 1003 Uniform Residential Loan Application Loans are processed using Calyx Point software Titan looks heavily at the following 4 criteria: Collateral – asset Borrowers Capacity – equity, ability to pay Credit – credit risk assessed The Exit Strategy We require 20% minimum down on cost and a minimum 30% equity position

14 The Valuation In determining property values, Titan utilizes the following valuation methods: • CMA (Comparable Market Analysis) • BPO (Broker Price Opinion) • Full Appraisal Titan will often use more than one of the above valuation methods.

15 Risks There are a number of risks that can impact the Fund. Two primary risks include: Loss of income: loss of income arises when a borrower fails to pay interest due on the note Loss of principal: loss of principal could arise from a catastrophic move in property values Note: our current loan portfolio is 59% loan to value which remains extremely conservative in our industry locally and nationally. Many of our borrowers put down more than the minimum required to reduce their cost of leverage.

16 Security First position Deed of Trust Promissory Note Title Insured
Cross Collateral when appropriate Hazard Insurance Notes are short term in nature Taxes, Insurance, and Special Assessments: Short term (6 to 12 months): paid up front for term of loan Long term (24 months plus): impounded

17 Historical Loan Profile
Year 2009 2010 2011 2012 2013 * Total # of Loans 80 38 103 82 65 368 Avg. Size $118,388 $109,576 $71,834 $65,703 $95,108 $88,597 Total loan issued (in million) $9,471 $4,164 $7,399 $5,388 $6,182 $32,604 Avg. Duration 90 days 120 days 100 days 125 days 140 days Portfolio LTV 60% 56% 62% 65% 59% * Through December 11, 2013

18 Financial Summary Year 2009 2010 2011 2012 2013 (1) Total loan amount
(in mil) $9,471 $4,164 $7,399 $5,388 $6,182 Total coupon & fees - gross $190,049 $738,273 $1,621,628 $841,889 $896,267 Gross Income Return (2) 2% 18% 22% 16% 14% Number of Defaults (3) 4 2 Default rate (4) - 17% 6% Recovery rate (5) 116% 121% Note: Through December 11, 2013 Gross income = Total interest income + Fees Default based on origination date Default rate is % of default over the total loan issued for the year on origination date (static pool analysis) Recovery amount includes principal, interest due, cost of upgrading, late charges, legal fees and marketing expenses

19 Accounting Platform “ We have chosen to use this highly acclaimed software as the Fund’s accounting foundation” Rick Rickert CEO The Mortgage Office by Applied Business Software Loan Servicing Software – Mortgage Pool Software Applied Business Software, Inc. (ABS) melds 30+ years of system design, product development, customer service & technical support into the industry's most comprehensive and user-friendly loan software on the market! We've thought of everything! Our carefully designed systems and developed solutions serve companies of any size equally well, from large lending institutions to small independent offices.

20 Disclosure Investors are provided with: The Offering
The Operating Agreement The Subscription Agreement Quarterly Reviewed Financial Statements Annual Audited Financial Statements

21 Why Titan? The Team The Experience The Market Place The Security
The Return on Investment The Track Record The Support Systems The Qualifying Process

22 To Initiate Your Investment
Contact The Corporate Office Adam Child – President Rick Rickert – CEO To learn more about Titan visit our web site at


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