1. Pinnacle Funding & Investment Group, LLC
Case Study The Three P’s and the Million Dollar Deal Presented by Tom Chase
Pinnacle Funding & Investment Group, LLC

2. Pinnacle Funding and Investment Group - Copyright 2014
About PF&IG
We buy performing notes and contracts for deed in Arizona
Business model evolving and expanding
AZREIA – APLA – MLO – Real Estate
How I got stated in this business
Pinnacle Funding and Investment Group - Copyright 2014

3. How I Got Started in the Note Business
2011 Buyout – My Why
Quest for education
Short term F&F Notes
Working with investors
Pinnacle Funding and Investment Group - Copyright 2014

4. The Three P’s Patience Persistence Performance
the capacity to accept or tolerate delay, trouble, or suffering without getting angry or upset.
Persistence
firm or obstinate continuance in a course of action in spite of difficulty or opposition.
Performance
The accomplishment of a given task or
fulfillment of an obligation
Lessons in Patience
Handle the bumps in the road as they appear
If another party doesn’t follow through, don’t get upset
Lessons in Persistence
When the deal is not progressing as you planned don’t give up on it
When presented with a roadblock, find a way to get around it
Lessons in Performance
Find ways to Perform on the agreement you made
Do what you say you will do when you say you will do it
Don’t continuously go back to well or nickel and dime the deal
Pinnacle Funding and Investment Group - Copyright 2014

5. Tonopah, Arizona Case Study
Pinnacle Funding and Investment Group - Copyright 2014

6. Tonopah, Arizona Case Study
24 Performing contracts Unpaid Balance – $1.95 Million Property Value - $1.51 Million Monthly Cash Flow
$17,205
24 Properties
23 DW Manufactured homes on 1 to 4 acre lots
1 standard SFH
Sold on Contracts for Deed
The purchase contract
- October 28, 2015 for Dec 31, 2015 closing
Purchase Price - $1.1 Million
Pinnacle Funding and Investment Group - Copyright 2014

7. Pinnacle Funding and Investment Group - Copyright 2014
Evaluating the Deal
Concerns
What did we like
Contracts not recorded
Cash Flow with strong yield
Self Serviced
Avg. loan seasoning 55 mths.
No impounds
Can be purchased at discount
CFD vs DOT
Property values increasing
Note terms
Cost per asset favorable: 46K
Multiple ownership
Little earnest money: $5,000
Cooperative seller
Buy by case, sell by bottle
Capital partner in place
Talk to borrowers
Comfortable with comps
Pinnacle Funding and Investment Group - Copyright 2014

8. The Purchase Agreement
$1.10 Million with $5,000 earnest
10/28/15 with close 12/31/15
Disclosure of capital partner(s)
We assigned individual prices
Seller pays title ins. and ½ escrow
20 day due diligence period
Seller to create promissory notes and DOT
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9. Pinnacle Funding and Investment Group - Copyright 2014
Challenges
Capital partner not all-in
Seller begin doubting our ability to perform
I began to doubt my ability to perform
I started beating myself up
Taking Action – Contingency Plan
Taking responsibility to Perform
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10. Pinnacle Funding and Investment Group - Copyright 2014
Clearing the Hurdles
Open dialog with seller
We still want to buy – You still want to sell
Modified the sales agreement
New Plan - Split up the Deal
Promissory Note & DOT (12 Qualified)
CFD properties (12 did not Qualify)
Pinnacle Funding and Investment Group - Copyright 2014

11. More Issues Missing titles for some homes Well sharing agreements
No affidavit of affixture for some
Easements for ingress/egress missing
Easements for public utilities missing
Legal descriptions
Well sharing agreements
Bank liens on three properties
Had to change title companies in the middle of deal
Seller had health problem
One of the principals in the deal passed away
60 Day close turned into 17 months
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12. Pinnacle Funding and Investment Group - Copyright 2014
What Kept Us Focused
Our vision of this deal never faded
Performing to our commitment
Our passion to help others
Failure or non-performance was not an option
We developed a contingency plan and performed to the plan
Pinnacle Funding and Investment Group - Copyright 2014

13. Pinnacle Funding and Investment Group - Copyright 2014
The Flow of The Deal
March 2016 – Closed on 5 of the DOT 12
3 with investors
1 Joint Venture agreement
1 we purchased for our IRA
June 2016 – Closed 3 more DOT with investors
Sept 2016 – Closed 1 more DOT with investor
March 2017 – Closed final 3 of 12 DOT
2 with investors
Pinnacle Funding and Investment Group - Copyright 2014

14. Results of the 12 DOT Properties
Added $1,375 a month in cash flow to our IRA
Added $83.00 a month in JV cash flow
Made a Gross profit of $112,044 on the 9 we placed with investors
Our investors partners enjoying 12 to 15% yield on their performing notes
Pinnacle Funding and Investment Group - Copyright 2014

15. Results of the 12 CFD Properties
We purchased the properties subject to the existing CFDs
Purchase price of the final 12 is financed by the sellers at 9% interest only for 5 years
Gross cash flow $8,635/mth
Our payment to seller $4,250/mth
Net cash flow $4,385/mth
Pinnacle Funding and Investment Group - Copyright 2014

16. The Bottom Line WIN-WIN-WIN
Our patience, persistence and performance created some very nice profits for us, the sellers and our investor partners
We expect this one deal to be worth over $600,000 in Gross Profit over 5 years
Pinnacle Funding and Investment Group - Copyright 2014

17. Pinnacle Funding and Investment Group - Copyright 2014
Contact Information
Tom Chase – AZ Note Guy Questions:
Pinnacle Funding and Investment Group - Copyright 2014