1 Private Hard Money Lending “Your success is our success.” ~ Trent Dalrymple Director, Investor Relations – Metro Mortgage Investments Metro-Mi.com Woodward Ave. Suite 301 Huntington Woods, MI (248)

What is Hard Money? Metro-Mi.com 2 A hard money loan is loan where a borrower receives funds secured by real estate. Hard money loans are typically issued at much higher interest rates than conventional loans. Many hard money mortgages are made by private investors, generally in their local areas. Source:

Is it Regulated? Mortgage Brokers, Lenders, and Servicers Licensing Act – MCL Mortgage Loan Originator Licensing Act – MCL Secondary Mortgage Loan Act – MCL Consumer Financial Services Act – MCL Consumer Mortgage Protection Act – MCL Mortgage Lending Practices Act – MCL Regulation X – RESPA Regulation Z – TILA Regulation B – ECOA Fair Credit Reporting Act Various FTC Rules –Safeguard Rule –Red Flags Rule (ID Theft Prevention) –Risk-Based Pricing Rule Metro-Mi.com 3 "Mortgage loan" means a loan secured by a first mortgage on real property located in this state and used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families or a land contract covering real property located in this state used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families.

Why Hard Money? Faster Process Flexible Lend using ARV Leverage Equity Higher Debt Ratio Distressed Property Metro-Mi.com 4

Leveraged Investing 5 Your out of pocket costs: $6,750 – Closing Costs $2,500 – Property Tax Impound $5,400 – Monthly Interest $14,650 Return on Investment (ROI)

Purchase-Rehab Loans Borrow against the projected After Repair Value [ARV] Purchase Price + Repair Costs Setup Fund Control Release as Repairs Completed Metro-Mi.com 6

Property Requirements Brick 3 Bedrooms + Basement Garage Required Pride-of-Ownership Neighborhood Metro-Mi.com 7

Appraisals Specialized Appraisal –List of Required Repairs by Licensed Contractor –Predominant Sales Company Approved Independent Licensed Appraiser Desktop / Full Appraisals Metro-Mi.com 8

Borrower Profile Home Owner Experience with Property Ability to Repay Credit History –NO Recent Foreclosures –NO Current Bankruptcy –NO Consistent Negative Issues Metro-Mi.com 9

10 Be Prepared Appraisal Loan Application Credit Report Income Documents Title Commitment Purchase Agreement Metro-Mi.com

11 Be Prepared Cash into Project –Minimum 10% Realistic Exit Strategy –Extension Available Property Taxes – Escrowed / Impounded ACH Payments –Automatic Withdrawal Metro-Mi.com

Michigan Programs & Fees Real Estate Investor –Interest Only Foreclosure Rescue –Homeowners –Amortized Seller Holdback –Lien of Interest Application Fee Appraisal Fee Interest Rates –14% to 18% Closing Costs –6 to 10% –$3,000 (min) Metro-Mi.com 12

The Corporate Team David DiMeo, President & Broker Over 15 years experience in providing privately funded mortgages Business Development / Service Partner Agreements Loans Programs / Underwriting Guidelines NMLS# Trent Dalrymple, VP Investor Relations Over 25 years experience as private mortgage professional Loan Origination / Account Management Training / Public Affairs NMLS# Anne Pancost, Quality & Compliance Officer Over 20 years experience in banking industry Senior Internal Auditor / Certified Bank Auditor Office Manager