1 Commercial Hard Money Lending “Hard Money Easy Profits.” ~ Lee Anthony Loan Consultant – Hard Money Guye 1512 Broadway Detroit, Michigan (313)

What is Hard Money? 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. 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. 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 Brokers, Lenders, and Servicers Licensing Act – MCL Mortgage Loan Originator Licensing Act – MCL Mortgage Loan Originator Licensing Act – MCL Secondary Mortgage Loan Act – MCL Secondary Mortgage Loan Act – MCL Consumer Financial Services Act – MCL Consumer Financial Services Act – MCL Consumer Mortgage Protection Act – MCL Consumer Mortgage Protection Act – MCL Mortgage Lending Practices Act – MCL Mortgage Lending Practices Act – MCL Regulation X – RESPA Regulation X – RESPA Regulation Z – TILA Regulation Z – TILA Regulation B – ECOA Regulation B – ECOA Fair Credit Reporting Act Fair Credit Reporting Act Various FTC Rules Various FTC Rules Safeguard Rule Safeguard Rule Red Flags Rule (ID Theft Prevention) Red Flags Rule (ID Theft Prevention) Risk-Based Pricing Rule Risk-Based Pricing Rule 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 Faster Process Flexible Flexible Lend using ARV Lend using ARV Leverage Equity Leverage Equity Higher Debt Ratio Higher Debt Ratio Distressed Property Distressed Property 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] Borrow against the projected After Repair Value [ARV] Purchase Price + Repair Costs Purchase Price + Repair Costs Setup Fund Control Setup Fund Control Release as Repairs Completed Release as Repairs Completed 6

Property Requirements Brick Steel Glass Brick Steel Glass 5 Unit or Plex 5 Unit or Plex Multi Family Retail Multi Family Retail Parking Lot Desired Parking Lot Desired Redevelopment Redevelopment 7

Appraisals Specialized Appraisal Specialized Appraisal List of Required Repairs by Licensed Contractor List of Required Repairs by Licensed Contractor Predominant Sales Predominant Sales Company Approved Independent Licensed Appraiser Company Approved Independent Licensed Appraiser Desktop / Full Appraisals Desktop / Full Appraisals 8

Borrower Profile Home Owner Home Owner Experience with Property Experience with Property Ability to Repay Ability to Repay Credit History Credit History NO Recent Foreclosures NO Recent Foreclosures NO Current Bankruptcy NO Current Bankruptcy NO Consistent Negative Issues NO Consistent Negative Issues 9

10 Be Prepared Appraisal Appraisal Loan Application Loan Application Credit Report Credit Report Income Documents Income Documents Title Commitment Title Commitment Purchase Agreement Purchase Agreement Cash into Project Minimum 10% Realistic Exit Strategy Extension Available Property Taxes Escrowed / Impounded ACH Payments Automatic Withdrawal CONTACT: Lee Anthony