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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Raising cash paperwork... Posted by Ward-CA- on August 19, 2003 at 9:12 AM In Reply to: Fund Raising posted by Gary on August 18, 2003 at 10:37 PM : Ward and everyone else with POSITIVE input, thank you! : I'm in the process of trying to get money together and will be approaching potential investors sometime soon (hopefully). My question is what should I be preparing in respect to a contract? What kind of return should I discuss? Basically, I need all the help I can get. : Thanks : Gary =-=-=-===-=-= Gary, We utilize two different money sources. We refer to "investors" as those people who give us money to do a foreclosure deal without any security in return. That's because we have to have the money in hand to attend the foreclosure auction before we acquire the title to the property. These investors share the profits with us on a 50/50 profit split. Then we have "lenders". These people are secured by receiving a deed of trust and promissory note against the title of real property we have recently bought at the foreclosure auctons. So we have secured lenders and unsecured investors. And each play a specific role. The unsecured investor allows us to get into the "game" by funding our grubstake. It is their "flash cash" we use to bid at the foreclosure auctions. Once we have bought a foreclosure we can then borrow against it, giving our "lenders" a secured 1st position loan in exchange. That allows us to get our flash cash back to attend another auction. We pay our lenders simple 7% interest on their promissory note that's secured by a 1st trust deed against the property. The property is held in a title holding trust. Our unsecured "flash cash" investors are the beneficiaries of the trust. We split our profits with them on a 50/50 basis. Since our lenders are secured by 1st trust deeds and are given a guaranteed, preferential return, we can use money from security conscious people such as senior citizens. The only lender paperwork required is a standard promissory note that is secured by a recorded deed of trust. The only people we seek out for our flash cash investors are those people who could withstand the possible 100% loss of their investment monies. Because of that potential risk, we pay them half of our profits. The investor paperwork we use has grown to a 3 page Foreclosure Investment Agreement accompanied with 3 more pages of ancillary documents. We give a 2 hour class plus all required forms on the subject of Raising Cash. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward and everyone else with POSITIVE input, thank you! : : I'm in the process of trying to get money together and will be approaching potential investors sometime soon (hopefully). My question is what should I be preparing in respect to a contract? What kind of return should I discuss? Basically, I need all the help I can get. : : Thanks : : Gary : =-=-=-===-=-= : Gary, : We utilize two different money sources. : We refer to "investors" as those people who give us money to do a foreclosure deal without any security in return. That's because we have to have the money in hand to attend the foreclosure auction before we acquire the title to the property. These investors share the profits with us on a 50/50 profit split. : Then we have "lenders". These people are secured by receiving a deed of trust and promissory note against the title of real property we have recently bought at the foreclosure auctons. : So we have secured lenders and unsecured investors. And each play a specific role. : The unsecured investor allows us to get into the "game" by funding our grubstake. It is their "flash cash" we use to bid at the foreclosure auctions. Once we have bought a foreclosure we can then borrow against it, giving our "lenders" a secured 1st position loan in exchange. That allows us to get our flash cash back to attend another auction. : We pay our lenders simple 7% interest on their promissory note that's secured by a 1st trust deed against the property. : The property is held in a title holding trust. Our unsecured "flash cash" investors are the beneficiaries of the trust. We split our profits with them on a 50/50 basis. : Since our lenders are secured by 1st trust deeds and are given a guaranteed, preferential return, we can use money from security conscious people such as senior citizens. The only lender paperwork required is a standard promissory note that is secured by a recorded deed of trust. : The only people we seek out for our flash cash investors are those people who could withstand the possible 100% loss of their investment monies. Because of that potential risk, we pay them half of our profits. : The investor paperwork we use has grown to a 3 page Foreclosure Investment Agreement accompanied with 3 more pages of ancillary documents. : We give a 2 hour class plus all required forms on the subject of Raising Cash. : : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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