2 The Real Estate Market Foreclosures: - 861,000 homes lost to Foreclosure in 2008.- Record 800k filed 1st Qtr- Foreclosures Lost 2009 – 1,000,000, – 1,050,000, Est. 980,000- More to Come? – YES – More than in 2011.- 9-10% of ALL mortgages behind on payments (Unchanged)- Option ARM Loan Adjustments - $11B/mo. By Fall 2011)$29B recast in 2009, $67B in 2010, Ave. Payment Increase 63%% of all homes are “under water” (Value versus Debt).- Unemployment: 26 yr. high 10.0% - Now Around 9%. Recovery? – Not without jobs!BAD NEWS above means OPPORTUNITY for you!Short Sales: More RE Investors are actively pursuingBank REO’s: Banks taking discountsMy Estimated Market Timeline:Foreclosures near/above current level: months (2nd Wave?)Values begin stabilizing (very regional): months
3 What Do We Have? The Perfect Storm Leading to Real Estate Opportunities!!
4 Upcoming Waves of Foreclosures Potentially LARGER Foreclosure waves Mid 2010 and Mid-Late 2011
6 Your Opportunity What to Do? Not since the RTC in the early 1990’s have investors had such an opportunity (Most of us could not participate – mostly commercial properties and large cash needed)Great opportunity NOW to “Flip” for CASH:Short Sales, REO, Pre-foreclosure, ForeclosureWhat to Do?Get Educated!!TAKE ACTION: Find Buyers, Find Motivated Sellers, MAKE OFFERS
7 The Business of Flipping Real Estate Investors contract to purchase and to resale property.Investors need funding for the Purchase:Timeframe: Funding Options:Rehab = Private Lender/Hard MoneySame Day Resale = “Transactional Funding”1-35 days Resale = Extended Transactional Funding
8 The Purchase & Resale Transaction BBCSellerInvestorInvestorBuyerIf purchased AND Sold Same Day = “Transactional Funding”. If required to hold up to 35 days before resale = Extended Transactional Funding.
9 The Old Way Simultaneous “Dry” Closing PURCHASESALEABBCSellerInvestorInvestorBuyerBuyer “C” $$$ used to close the Purchase from A to B(No $$ from “B” Wholesaler)(We can no longer “Float” Funds from “C”)
10 The New Way “Back-to-Back”/Separate “Wet” Closings PURCHASESALEABBCSellerInvestorInvestorBuyer“Transactional Funding”Buyers Funds or Loan
11 The Current RealityChanges: by Banks, Title, and State LawNo more “Dry Closings” without Wholesaler $$$ to complete the Purchase and Banks require Proof Of Funds submitted with offers.Now Requires “Wet Closings”:ShortsalesMany REO’sOther Wholesale deals – Avoids Assignment Fee IssuesWe provide a legal way for you as a Wholesaler to complete a same day or extended term Purchase and Resale.
12 The Solution to the New Way Investor Funding Alternatives, LLC
13 What is “Transactional Funding”? A 100% “liquidity” Purchase “Funding”.It is not a traditional Loan – it is “Providing Equity Capital”.NO QUALIFYING – No Credit or Income for same-day deals.Conditioned on the same-day “B” to “C” Sale “Transaction” closing, or a fully approved buyer for Extended Transactional Funding.Also know as “Flash Cash”, Dough for a Day, or Flip Funding.Much less expensive than “Hard Money”.The Legal Way to accomplish Wholesale “Flips”.Another “Tool” in your belt.
14 Qualifying NO Down Payment - 100% LTV (including Closing Costs) NO Credit Check for same-day transactionsPoor Credit/BK/Foreclosure - OKNO FinancialsYou Provide Only:Purchase and Sale Contracts and TitleYour Business Entity evidence (Must be an Entity)(LLC, Trust, Corp, Partnership, LP)End-Buyer’s Funding – Mtg. Approval or Cash
15 Investor Funding Alternatives SERVICE First – To Build Relationships!Fast Commitments & FundingOur Title or yours (no Fee increase for yours)(Purchase and Sale to be at same Title Co.)Lowest Funding FeeLow Administration FeeLower Minimum Fees on smaller loansMuch Lower Funding Fees above $1MOn-Line Proof of Funds LettersOn-Line Funding Request
16 Transactional Fee Schedule NO SET-UP FEES$ 20,000 – $90,000 $1,800 Flat Fee$90,001 – $1,000, pts. Only $495 Application Fees to $1M$1M - $5 Million pts. (Only Loan sizes > $90k)$5M - $10 Million pts Proof of Funds Letter – $0.00= MORE (Auto Generated at Website)TO YOU!!!!
17 Exceptional Service for Transactional Funding Investor Funding Alternatives, LLCTed Akers