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Build Wealth Today
With Double Digit Returns,
No Commissions & Predictable Results
Investment Marketplace
What Are Your Investment Objectives?
• Security – CDs– Corporate Bonds– Government Bonds – Fixed Annuities
• Higher returns – Stocks – Mutual Funds– Variable Annuities
Bank Of America: CD Rates:
Annuity Rates:
Bond Rates:
S&P 500: Last 5 Years:
S&P 500: Last 10 Years:
Precious Metals April 2011 – April 2013
What is a Self Directed I.R.A?
• A Self Directed IRA is an IRA where the owner is required to make their own Investment decisions.
• Non- Traditional Assets: Like real estate, LLC’s, oil and gas, etc
• Self Directed IRA custodians (Like The iPlan Group who I use) set up real estate investments inside of an IRA.
• Any 401k, IRA, ROTH IRA, SEP IRA or HSA acct owner can make investments like real estate in those accts
• Sample Investments – Note (I.O.U) w/ Mortgage – Buy stock in a company
$500,000 Mutual Fund Investment
• American Funds = Small Cap World • Exp ratio = %1.09 (paid to the fund manager)
– @ 10% = $50,000 Profit / ROI– @ 8.91% = $44,550 Profit / ROI
• “A” Share Commission – (paid to the financial advisor who sells this mutual fund to their client)– $500,000 = 2% (breakpoint) = $10,000
• $500,000 - $10,000 = $490,000 - $5,341 (%1.09 exp ratio) = $484,659 left (zero ROI)
• $15,341 dollars in FEES for American Funds • $1,500 dollars in FEES for Equity Trust (self directed IRA)
Share Classes
• Class “A” Shares – up front commission • Class “B” Shares – back end commission &
higher expense ratio • Class “C” Shares – small annual commission &
highest expense ratio
“LOAD” / “NO LOAD”
• Load = Commission
• No Load Fund = No Commissions
• Paying a money manager = charge a money management fee – EX: Sell no load funds BUT charge 1% money
management fee + 1% expense ratio
Variable Annuities
• Act Very Similar A Mutual Fund – BUT
• Access To 40 Funds Within The Annuity • Transfer From Fund To Fund With No Expense • 3% Commission Up Front • AND • 2% Exp Ratio Per Year Every Year
Our Mission Statement
To Provide Our Investors Double Digit Investment Returns By Matching Our
Knowledge And Acquisition Of Undervalued Real Estate Assets With
Investors Looking For Investment Alternatives And Double Digit Returns.
Company Overview
FOM Holdings and Investments LLC.
A real estate investment firm created to purchase, manage and sell single, multi-family and commercial dwellings primarily in the Phoenix Arizona.
One and Only Goal
To Significantly Increase The Wealth Of Our Private Investors With
Double-digit Returns Plus Upside Bonus Potential .
How We Acquire Properties
• Private Individuals.
• Realtors.
• Pre-Foreclosures.
• Foreclosures & REOs.
Fall 2013 Current Project
• 4208 Sierra Vista, • Historic Phoenix• Paid = $58,000• Rehab = $32,000• Total = $90,000• Listed = $145,900• Projected Profit = $44,428
November 2012 Project
• 2721 W Villa Maria• North Phoenix• Paid = $54,500• Rehab = $22,000• Total = $76,500• Sold= $114,000• Profit = $31,160
August 2012 Project
• 10426 w Georgia• Glendale AZ• Paid = $89,900• Rehab = $6,000• Total = $95,900• Sold= $129,900• Profit = $26,206 in 35 days
February 2012 Projects
• 1942 N 104th Ave• Avondale• Paid = $62,300• Rehab = $8,860• Total = $71,160• Sold= $92,000• Profit = $15,320
June 2011 Project
• 8421 W Payson Rd• Tolleson AZ• Paid = $74,100• Rehab = $0• Total = $74,100• Sold= $110,000• Profit = $35,900
November 2011 Project
• 21844 W Pima St• Buckeye• Paid = $79,500• Rehab = $3,350• Total = $82,850• Sold= $104,000• Profit = $16,850
March 2012 Project
• 10217 W FLORENCE• Tolleson AZ• Paid = $70,000• Rehab = $4,650• Total = $74,650• Sold= $103,000• Profit = $22,170
Current 2014, Opportunities4712 W Lindner, $20,000
Current 2014, Opportunities5538 E Dionysus Dr, $32,600
Invest in Sunny Phoenix Arizona• The Phoenix Metro area is made up of 1 major county, Maricopa County and is the 6th largest consumer market in the U.S.
IRA Eligible• Individual Retirement Accounts qualify,
including Roth’s.
• Allows you to self-direct your investments.
• 3rd Party Administrator sends money to title agent’s escrow account.
• Title agent sends all money back to 3rd Party Administrator.– Equity Trust Company.– Nation’s foremost self-directed
custodian.– Premier customer service.
Security Mortgage Note
Private LenderProgram Overview
• We buy houses.
• We borrow money from private lenders to fund our deals.
• We pay 12% fixed returns ~OR~ 20% of the profit, WHICHEVER IS GREATER.
• We have a formal closing and you get a mortgage on the home at a reasonable L.T.V.
• Title Insurance and hazard insurance protect you.
• Private funds allow us greater purchasing power
$50,000 Investment Example
Type Yield12-
MonthReturn
Bank CD 1.5% $750
RE Investor 12.00% $6,000
Annual Increase $5,250
In 5 years, your investment could grow to $75,000!
Investment Documents• Promissory Note for loan
amount.
• Recorded Mortgage at reasonable 70% L.T.V.
• Hazard Insurance Policy, lender named as a loss payee paid for by borrower.
• Title Insurance lender’s policy paid for by borrower.
Current Investment Opportunity4712 W. Lindner
Appraisal Value: $185,000 Loan/Investment: $141,000 Purchase Price: $128,000 Renovation Cost: $11,000 Resale Price: $178,000 Gross Profit: $37,000 minus closing costs Net Profit: $24,540 Interest to Private Lender: $5,640
20% of the profits =$4,908 Return of Investment: 22.55%
Investor: 22.5% Return on Investment;
Principal and Interest returned to Investor in 4
months
Investor Benefits• Investor income:– $135,500 (loan) x 22.5% = $30,555 annually.
– Monthly interest = $2,546.
• Investor is “THE BANK”– First lien-holder.
– DUE ON SALE of the asset providing protection of principal.
– No personal or property liability.
– No property management.
BEFORE AFTER
*Bonus*• FOM Holdings and Investments LLC Private Lenders receive
12% fixed interest ~OR~ 20% of the net profits on the resale whichever is greater.
3 Step Process
1. Set Up A IRA Acct = Equity Trust 2. Fund The Acct =
1. Rollover = from 401k or 203b 2. Transfer = from another IRA
3. Make An Investment
R.O.I. OFFER
• 12% interest • ~OR~• 20% of the profit • Whichever is greater (If/when they fund an
entire deal).
FOM Holdings and Investments LLC Works Hard So You Can Relax
• Locate potential properties.• Perform property analysis and
due diligence.• Process and evaluate foreclosures
from “Legal News.”• Monitor property’s foreclosure
proceedings at courthouse and through media.
• Address Realtor questions.• Interface with Equity Trust Co.• Provide presentations to
investors.
• Negotiate offers.• Coordinate and oversee inspections.• Coordinate closings.• Research marketplace.• Perform marketplace analysis.• Develop marketing plan.• Coordinate title searches.• Arrange and oversee inspections.• Review settlements for accuracy.
• Create ads and signs for advertising available properties.
• Put out lock boxes and signs.• Obtain constant training through
Phoenix Assoc. of Realtors and National Real Estate Investing Association and local AZREIA.
• Manage database.
• Call lenders weekly.• Interface with insurance company.• Schedule showings.• Hold open houses.• Coordinate and monitor property
renovations.• Negotiate with subcontractors.• Monitor property renovation
budgets.• Negotiate with homeowners.• Prospect for new clients.
FOM Holdings and Investments LLC Works Hard So You Can Relax
Program Guidelines• Each loan gets a mortgage.• $50,000 and above, you typically get a 1st mortgage.• $10,000 to $50,000, you typically get a 2nd mortgage.• No bundling or combining of funds.
Investor Payments• Quarterly.
~OR~
• Annually.~OR~
• Interest accrues monthly – full payment of principal and interest when property is sold.
You pay no transaction fees or closing costs!
Early CD Withdrawal• A bank’s average penalty on a $50,000 CD is
$750 (6 months interest @ 3%).
• FOM Holdings and Investments LLC may pay your withdrawal penalty.
IRA Eligible• Individual Retirement Accounts qualify, including Roth
IRAs.
• Allows you to self-direct your investments in real estate.
• 3rd Party Administrators.
– Vantage Trust(Phoenix, Arizona)
Investor Profile• Want to increase your R.O.I.
• Want some collateral to protect investment capital.
• Have liquid assets ($50k) available to invest for 2 - 5+ year term.– Savings accounts– CDs– IRA
Investment Alternatives
• Transition to a secured investment.
• Collateral-based.
• Fixed returns.
• Better protection of principal.
What Do Smart Banks Know About Investing? Plenty!
• Banks lend heavily in Real Estate.
• They take in money on CDs (ex. 2%).
• Then loan the money out at a higher rate of interest to other people to buy houses (ex. 5%).
• This is called “Arbitrage.”
You can be the bank.
What Does Arbitrage Mean?The simultaneous purchase and sale of an asset in order to profit
from a difference in the price. It is a trade that profits by exploiting price differences of identical or similar financial
instruments, on different markets or in different forms.
Arbitrage exists as a result of market inefficiencies.
Read more: http://www.investopedia.com/terms/a/arbitrage.asp#ixzz1bjRmwFX4
Building Wealth By Becoming “The Bank”
Private Lender Program
No hassles, no fees.
Fixed double-digit returns plus bonuses.
You determine your levels of risk.
Predictable Retirement Investing Made Easy
Scenario #1: “Short Term Double-Digit Interest”
1. Our company locates distressed properties.
2. Our company purchases the property significantly below market value.
3. Private individual lends us money via wire transfer to escrow agent.• Investor lends from account they
control.• Money goes to title agent’s escrow
account.
4. The private individual receives documents (note and mortgage) to secure investment at formal closing.
Private LenderQuick-Turn Program Overview
• Private funds allow us to purchase at a discount quickly.
• We have a formal closing with a HUD1 settlement statement.
• Title Insurance to protect all parties.• We then quickly resell the property
using 7 different strategies.• The private lender’s money is
returned to them with interest and/or profits.
Scenario #2: “Long Term Interest”1. Our company locates a property.
2. Our company purchases the property.
3. Private individual lends money via transfer to escrow agent.
4. They receive documents to secure investment at formal closing.
5. Our company finds a tenant/buyer.
6. Our company collects the rent from tenant buyer which covers payment to private lender plus other expenses plus monthly profit.
7. Our company writes a check for interest payment to private lender quarterly or annually.
Program Guidelines
• Each loan is secured by a note.• A mortgage is recorded in
public record to secure the note.
• We typically require $60,000 - $150,000 for quick-turn loans.
Protection of Principal• #1 Rule: Money borrowed
is no higher than 70% loan-to-value; after repair value.
• We then build in more equity by renovating the property.
• Independent appraisals done upon lender’s request.
Because we don’t over-leverage the property, you get additional
security.
We Don’t Break This Rule!
70% Loan-To-Value (ARV) Rule
70% loan to value
100% appraised value
In the Event Something Happens to a Key Owner
• FOM Holdings and Investments LLC will continue on in business.
• Single family homes are easier to sell/liquidate.
• Properties can be sold if necessary, and your principal and interest will be paid.
• Andrew has named private lenders as beneficiary on his life insurance policy for the amount of the mortgage.
Give Yourself the Gift of Time
Your Quality of Life Is Important
We now enjoy a more relaxed lifestyle.
Thanks, Mom and Dad, for the gift of education.
Peace of mind for us in retirement is priceless.
The Next Step?• We will answer any questions you have.
• Now that you know how you can earn double-digit returns on your investments…
– Sign up today for a private meeting.
• Also, do you know someone else who may want to earn double-digit returns?
Join our team of Private Lenders
FOM Holdings and Investments LLC
Private Investing602-282-0221
Investing Solutions
