Trust Deeds and Real Estate

Investing

Disclaimer/Disclosure

Money invested through a mortgage broker is not guaranteed to earn any interest or return and is not insured. Before investing, investors must be provided applicable disclosures. Past performance does not guarantee future results or success. Consolidated

requires a $20,000 minimum investment.

Nevada MLD#284 – Consolidated Mortgage, LLC.

1291 Galleria Drive, Suite 220

Henderson, NV 89014

P. 702.739.9090/877.739.9094

• Founded in 1977 • Over $2 Billion in real estate

transactions closed• Over $500 Million under

management

Company Overview

What is a Trust Deed / Mortgage?

Definition of Trust Deed

Private Notes - Public Deeds

1st Trust Deeds Only

Types of Trust Deeds

• Land Acquisition

• Land Development

• Construction

• Bridge

Why Borrow from Consolidated?

Speed

Flexibility

The Art of Choosing Good Loans

• 5 C’s of Lending– Collateral– Capacity to borrow– Character of the borrower– Capital – Conditions of the market

• Fact Sheets

Risks Involved in Trust Deed Investing

• Borrower Defaults

• Illiquid or Non-liquid

• No tax benefits for non-

qualified funds

Why does a Trust Deed belong in your portfolio?

Is your portfolio diversified?

Growth vs. Income(Example: 100 – Age = Growth Percent)

Fixed Income Bonds vs. Trust Deeds

• Backed by company issuing bond

• Backed by borrower and collateral (real estate)

• Secondary market

• Interest paid monthly, quarterly, semi-annually, annually

• Maturity Dates vary

• Yield is traditionally

6 – 8%

• No Secondary market

• Interest paid monthly

• Maturity dates typically are 12 months

• Yield is traditionally 12% and higher

Fixed Income Annuity vs. Trust Deeds

• Backed by Insurance Company

• Backed by borrower and collateral (real estate)

• Typically interest paid annually

• Maturity – Date of death

• Yield is traditionally3 – 5%

• Tax deferred

• Interest paid monthly

• Maturity dates typically 12 months

• Yield is traditionally 12% and higher

• Tax deferred if invested with IRA

Why is there an opportunity to invest?

• State of the Market– Credit Crunch– Real Estate Bubble

• State of the Southwest– Increasing Population– Increasing Employment

Clark County Population

Southwest Regional Employment

Local Hot Spots – Las Vegas

Capital: $8.4 Billion

Rooms: 6,650

Estimated Completion: 2009

This construction project is the most expensive privately funded in U.S. History

City Center

Echelon PlaceCapital: $1.9 Billion

Rooms: 2,045 suites

Estimated Completion: 2008

This project will make Wynn Las Vegas the fifth largest hotel in the world.

The Plaza

Capital: $4.8 Billion

Rooms: 4,713 Estimated Completion: 2010

The Echelon will be divided into five partially separated towers.

Capital: $5+ Billion

Rooms: 4,100

Estimated Completion: 2011

Current plans are to create a replica of the ultra luxurious New York namesake.

Encore

The Palazzo

Palms Place

Capital: $1.6 Billion

Rooms: 3,025 suites

Opened: Jan. 2008

Capital: $650 Million Expansion

Rooms: 347 Condos

Opened: Feb. 2008

Why Lend in Today’s Market?

Have We Hit Bottom?• Property Values• Land, Development and Construction

• Lending Opportunities• Credit Crunch • Bank Quality Loans &

Borrowers• Lending at the bottom

Example

2006 Value $5,000,000.00

2008 Value $3,000,000.00

2008 Loan $1,800,000.00

2008 LTV 60%

Would you make this loan?????

What types of funds can I use to invest?

• Money in checking and/or savings account

• Roth IRA or IRA• Corporate Funds

(LLC, Inc, etc…)

Benefits of Trust Deed Investing

• Secured by Real Property• Short Term Commitment• Double Digit Annual Returns• Interest Paid Monthly• Portfolio Diversification

Thank you for attending

Q & A