Kevin Palmer of Palmer Management LLC presented on private mortgage investment opportunities secured by real estate. The company buys and renovates 1-5 houses per month, borrowing 70-100% from banks and the remainder from private investors at 9-12% interest over 1-3 years. Investors can choose monthly, quarterly, or annual interest payments. The company protects investors through promissory notes, mortgages, and insurance on the properties.
1. Private Mortgage
Investments
High Yield Investments
Secured by Real Estate
3/20/2009
2. Private Mortgage
Investments
Kevin Palmer
President
Palmer Management, LLC
3/20/2009
3. Disclaimer
Please carefully consider Palmer
Management, LLC's investment objectives,
risks, and associated costs or expenses
before investing. Real estate investments
are not guaranteed or insured and past
performance is not a guarantee of future
performance. Please ask questions and
ask for more information before you
consider any investment.
3/20/2009
4. WELCOME
Glad you could be here this afternoon.
We have a exciting and profitable program
for you to understand
Please feel free to ask questions and
participate in the presentation
If you have further questions we can
schedule a one-on-one meeting at a later
date.
3/20/2009
5. Agenda
Private Investor Program
1st Mortgage Program
2nd Mortgage Program
Company Overview
History
Dream team
Questions
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6. Agenda
Private Investor Program
1st Mortgage Program
2nd Mortgage Program
Company Overview
History
Dream team
Questions
3/20/2009
7. âMore millionaires have
created their wealth
through real estate than
any other endeavorâ
Andrew Carnegie
3/20/2009
8. Private Investor Program
Overview
We buy and sell 1 to 5 houses per month
To fund our deals we generally borrow
money from banks at 70% to 80% of value
and borrow the balance from private
individuals
Or we borrow 100% of the purchase price
from private individuals
We pay private investors 9% for 1st
mortgage money or 12% for 2nd mortgage
money
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We typically use your money for 1-3 years
9. Private Investor Program
How it works
We typically buy Pre-Foreclosure and Bank
owned homes
We negotiate to buy a house that is
typically 35% to 65% below market
At closing we borrow from you the private
investor to purchase the property
At the closing you get a mortgage and
insurance as security
We make payments to you on the
scheduled dates
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10. Private Investor Program
Guidelines - 1st Mortgage
Program
1st Mortgage Program
1. $50,000 minimum
2. Up to 75% LTV
3. 9% Interest
4. Numerous payment options (monthly,
quarterly, ect.)
5. 1-3 years (we allow early withdrawal without
any penalties)
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11. Private Investor Program
Guidelines - 2nd Mortgage
2nd Mortgage Program
Program
1. $5,000 minimum
2. 12% Interest
3. Numerous payment options (monthly,
quarterly, ect.)
4. Up to 95% LTV
5. 1-3 years (we allow early withdrawal without
any penalties)
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12. Private Investor Program
Payments Options
You get 9% simple interest on your invested
capital (12% if you choose the 2nd Mortgage
Program)
We can pay you any of the following ways:
Monthly (9.0% APR)
Quarterly (9.1% APR)
Semi-annually (9.2% APR)
Annual (9.4% APR)
No Payment Accrual Program (11.3% APR)
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13. $100,000 Investment Example
One Year
Yield 12 Month Return
3.7% $3,700
9.0% $9,000
This is a 240% increase in return
to you the Private Investor
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14. $100,000 Investment Example
Five Year
Yield 60 Month Return
3.7% (monthly) $18,500
9.0% (accruals for 5 years) $56,568
This is a 310% increase in return to
you the Private Investor
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15. Our Target Property
Average Purchase Price $10,000 - $250,000
Ramsey or Dakota County
Repair Cost $8,000 â $35,000
Typically 3 to 5 bedrooms and 1.5 baths
Time to renovate and rent or sell is less that
90 days
House will rent for $950 to $1,800 per month
Typical Loan is $100,000 or $750 per month
Our profit is the spread between the rent and
your interest paymentthe 9% interest.
Rent payment pays
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16. People Who Sell Us
Houses
Foreclosures (80%)
Banks
HUD
VA
Freddie
Fannie
Private Individuals (15%)
Realtors (5%)
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17. People Who Rent
then Buy our Houses
We have Tenant/Buyers who plan to rent for
a year or two then purchase the home
Many will become first-time home buyers
They work with our mortgage brokers to
eventually purchase our homes in 12 o 24
months
Our goal is to get people off of the rent rolls
and into a home of their own
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18. How Do We Protect You
The Investor?
We collect rent from our tenants though
careful negotiations or the court actions,
if needed
We require a 3% to 10% non-refundable
deposit from our tenant/buyers which
dramatically reduces non-payment issues
For monthly rentals we require at least
two months security to protect both you
and us
We will never default on a loan - We will
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pay you out of our pocket, if needed
19. Three Documents Securing
Your Investment
Promissory Note signed at time of
investment by Palmer
Management LLC (Personal
Guarantees Upon Request)
Recorded first or second
mortgage
Certificate of insurance naming
you as additional insured
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20. Your BIGGEST Concern
Protection of Principle
1st Mortgage Program â we never borrow
more 75% Loan-to-Value
We typically buy 35% to 65% below market
We then build in equity by rehabbing the
property ($8,000 to $35,000)
We find quality tenants who give us large up
front deposits
We aggressively manage our properties to
make sure tenants pay on time and
maximize the property value
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21. Compare Private Lending
Versus Hard Money
Private Lender Lenders
Hard Money
9% to 12% 15% or Higher
One Point Fee 5 to 10 Points
No Credit Check Credit Score 600+
5 Year Term 6 to 12 Months
No Back End Fees 2 to 5 Point Backend
Total Cost < 13% Total Cost >25%
This Why We Use Private Lenders Versus Hard Money
Lenders
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24. Can We Accept IRA
Money?
We can accept loans form IRA & Roth investments
We Recommend Entrust Midwest or Equity Trust
Company as the Third part Administrator
Located in Plymouth, MN and Elyria, Ohio
Allow self directed investments in real estate from
both an IRA or ROTH account
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25. SEC Registration Issues
These secured mortgage notes are
exempt transactions pursuant to Section
203 (d) of the Minnesota code
No registration is require as long as we
stay below 25 investors and only deal with
Minnesota residents
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26. Agenda
Private Investor Program
1st Mortgage Program
2nd Mortgage Program
Company Overview
History
Dream team
Questions
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27. Palmer Management , LLC
A Limited Liability Company
We hold properties both short and long
term
4+ years of experience
Manage Rentals
Currently own 6 properties with $
1.1M in asset value
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28. Palmer Management, LLC
Who Is Kevin Palmer?
2% Years Old
Engaged â Jessica Rainey
Son named Kaleb â 4 Years
Little Girl on the way
Home â St. Paul, MN
A.A.S â Rasmussen College (2002-2005)
Business Management - Sales and Marketing
2 Years as a Supervisor at Alexanderâs
Mobility Services, leading 3-32 men per job.
Currently Supervising at Greatland
Transportation Systems Inc. A local family
owned company.
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29. Company Story
We started in April 2006 with the purchase of
a SFR in St. Paul, MN. Since that first
purchase, we have become serious property
investors in Ramsey and Washington
county.
We have grown to hold over 6 (consisting of
13 units and over 25 acres of land) properties
worth over $1.3 million
Our goal is to grow the company to hold and
manage about 200 units by providing
affordable housing to tenants and 1st time
homeowners
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30. Company Story, continued
The company is a private for-profit Real
Estate Investing Company
We acquire, rehab, and lease or sell
residential and, at times, commercial
real estate
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32. Competitive Advantage
Our competitive advantage is speed to
purchase a property and knowledge of
creative real estate techniques
That speed comes from knowing we have
private funds and the ability to pay cash and
close quickly
We are very focused in a small geographic
area and know the values in our market
much better than the sellers and, in most,
cases than our competition
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33. How to find us
Mailing Address: 1911 Suburban Ave Suit 140 St.
Paul, MN 55119
Web Site: www.palmermgmt.com
www.SellShortPro.com
www.QuickCashClose.com
E-Mail: palmermanagement@gmail.com
Cell Phone: 651-792-6147
Office Phone: 651-730-2345
Fax 651-294-9276
Toll Free: 888-309-5611
3/20/2009
35. The Next Step ?
By now you know how this program
works and how you can earn 9% or
12% starting today
Sign up today for a private meeting
We want a chance to answer any
questions and appreciate the
opportunity to work with you
3/20/2009