Presentation on theme: "Titan Capital Real Estate Fund 1"— Presentation transcript:
1Titan Capital Real Estate Fund 1 Helping Create and Facilitate Investment OpportunitiesTitan Capital Real Estate Fund 1
2IntroductionTitan 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.
3Preferred InterestThe 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.
4The HistoryTitan 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.
5The VisionTitan 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.
6Fund Architecture Offering Type: Regulation D, 506c Equity Offering, investors are membersMembers receive a fully executed Operating Agreement$50 million raise$10,000 minimum initial investmentDistributions paid monthlyDistributions can be reinvestedLiquidity: 1 year commitment
7The 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 – PresidentMr. 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.
9The OfficesThe 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 Street2nd floor Suite 110Mesa, AZ Las Vegas, NV 89104
10Titan Loan Products are primarily The ProductTitan 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
11DemandTitan 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.
12Where 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.
13UnderwritingWe utilize the industry standard 1003 Uniform Residential Loan ApplicationLoans are processed using Calyx Point softwareTitan looks heavily at the following 4 criteria:Collateral – assetBorrowers Capacity – equity, ability to payCredit – credit risk assessedThe Exit StrategyWe require 20% minimum down on cost and a minimum 30% equity position
14The ValuationIn determining property values, Titan utilizes the following valuation methods:• CMA (Comparable Market Analysis)• BPO (Broker Price Opinion)• Full AppraisalTitan will often use more than one of the above valuation methods.
15RisksThere 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 noteLoss of principal: loss of principal could arise from a catastrophic move in property valuesNote: 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.
16Security First position Deed of Trust Promissory Note Title Insured Cross Collateral when appropriateHazard InsuranceNotes are short term in natureTaxes, Insurance, and Special Assessments:Short term (6 to 12 months): paid up front for term of loanLong term (24 months plus): impounded
17Historical Loan Profile Year20092010201120122013 *Total# of Loans80381038265368Avg. Size$118,388$109,576$71,834$65,703$95,108$88,597Total loan issued(in million)$9,471$4,164$7,399$5,388$6,182$32,604Avg. Duration90 days120 days100 days125 days140 daysPortfolio LTV60%56%62%65%59%* Through December 11, 2013
18Financial Summary Year 2009 2010 2011 2012 2013 (1) Total loan amount (in mil)$9,471$4,164$7,399$5,388$6,182Total coupon & fees - gross$190,049$738,273$1,621,628$841,889$896,267Gross Income Return (2)2%18%22%16%14%Number of Defaults (3)42Default rate (4)-17%6%Recoveryrate (5)116%121%Note:Through December 11, 2013Gross income = Total interest income + FeesDefault based on origination dateDefault 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
19Accounting Platform“ We have chosen to use this highly acclaimed software as the Fund’s accounting foundation” Rick Rickert CEOThe Mortgage Office by Applied Business SoftwareLoan Servicing Software – Mortgage Pool SoftwareApplied 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.
20Disclosure Investors are provided with: The Offering The Operating AgreementThe Subscription AgreementQuarterly Reviewed Financial StatementsAnnual Audited Financial Statements
21Why Titan? The Team The Experience The Market Place The Security The Return on InvestmentThe Track RecordThe Support SystemsThe Qualifying Process
22To Initiate Your Investment ContactThe Corporate OfficeAdam Child – PresidentRick Rickert – CEOTo learn more about Titan visit our web site at