capital with convenience MEET THE TEAM jon west HEAD OF OPERATIONS AT RISE REALTY HOME BUYERS OWNER OF STALLION INVESTMENT GROUP ● 8 years of experience in single-family residential investment real estate ● 1,000+ wholesale transactions ● 8 flips ● 2 rentals ● 20 hard money loans originated MEET THE TEAM jacob davenport OWNER OF RISE REALTY HOME BUYERS OWNER OF DAVENPORT INVESTMENT GROUP ● 13 years of experience in single-family residential investment real estate ● 1,000+ wholesale transactions ● 80 flips ● 40 rentals ● 55 seller finance notes ● 14 hard money loans originated WHAT WE DO hard money loans We specialize in private money loans to investors who are flipping properties. overview of the loans Close and fund deals within seven days. First lien position secured by Deed of Trust, Personal Guaranty, and Promissory Note. Funding: ● 70% of after-repair value (ARV) 85% of purchase price at close 6 month term with 13% annualized interest 3-point origination fee; 1-point extension for another 3 months, $950 admin and processing fee WHAT WE LEND ON Exclusively single-family residential in Dallas-Fort Worth and surrounding areas. Properties with an ARV of $600,000 or less. We do our own in-house opinion of value in order to stay competitive and earn loans. Why? We take a conservative approach and do a small amount of loans on properties we feel the most confident valuing. what we don’t lend on ● Mobile homes ● Land ● Primary residents ● Commercial properties ● High-end properties ● Multi-family OUR BORROWERS Single-family investors looking for a short-term fix & flip loan. A minimum of 2-3 projects under their belt. Investors looking for a bridge loan for a long-term rental. ***Refinance to follow when renovations are complete. 12 months of liquidity. 2 WAYS YOU CAN PARTNER WITH US 1. Fund our loans in first lien position. ○ In this scenario the private capital funds between 70-90% of our note value with the promissory note to our borrower as collateral for the private capital. ○ Private capital must have a minimum of $200,000 to participate in this capacity. ○ 11% interest with capital tied up for as long as loan is out (typically 3-6 months but could be longer). Capital paid back once loan is paid back. Payments made quarterly. ○ Personally guaranteed 2. Loan money directly to Westport Lending. ○ Minimum needed: $50,000 ○ 1 year promissory note at 10% interest or 1 year promissory note at 8% interest with quarterly liquidity. ○ Payments made quarterly ○ Personally guaranteed HOW WE MINIMIZE OUR RISK Only lending on SFR in Dallas-Fort Worth and surrounding markets, a market we know and understand well. Not over-leveraging. We only release rehab funds after rehab has been confirmed with visual inspection and invoice or copy of checks. We only lend on investment properties. The foreclosure process is only 60 days for commercial loans in Texas. Lending in first lien position secured by deed of trust. Borrower prepays 6 months of insurance, prepaid interest for the current month, 3-point origination, and other closing costs. *** A typical deal has the borrower into the deal at an average of $36,000 at closing. We avoid high-end flips and extensive structural rehabs (adding square footage, flood/fire damage, drainage issues, etc.). HOW WE MINIMIZE OUR PRIVATE LENDER RISK We sign personal guarantees on all private loans made to Westport Lending. Structure all private capital as debt, rather than equity, with quarterly interest payments. Quarterly financial reports on Westport Lending provided to all private capital. Personal financials provided upon request. 4 LEVELS OF PROTECTION Before any private money loan to Westport would be at risk, there are four levels of liquidity that would have to dry up: 1. investor profit Most flippers and investors are looking for a 10-15% profit on a deal. Thus, a typical deal is $30-45K in profit would have to disappear before there is any pain in the deal 2. investor’s capital in the deal Even if an investor’s profit was diminished, they would still have cash tied up in the deal. This would keep them motivated to see the project through and pay back our loan. An additional $30-40K in equity would have to be lost before an investor would consider letting a property go to foreclosure. 3. our profits Westport Lending is operating at 36% profit margin on our revenue. Before any further risk to the private loan, all profit from Westport would have to dry up. 4. personal guarantee Both owners are signing personal guarantees. Before any risk to a private money lender, all assets would have to become insufficient to cover any loans. ***Financial statements provided upon request. WHY THIS INVESTMENT IS UNIQUE An investment backed by real estate. There are not many investments in the market today at an 8-11% return that have real estate as collateral and a leverage of 49-63% LTV. Cash Flow. Most investments that may promise these returns have a long deal horizon with capital tied up for years and little to no quarterly distributions. This investment is a pure cash flow strategy with all returns of 8-11% paid out quarterly. WHY BORROWERS CHOOSE US? speed We can fund a deal in as little as 3 days A quick close often means an investor can buy a property at a deeper discount. assurance Closing is guaranteed. We are the decision makers so there is no red tape. experience Experience and second opinion/partner who knows and invests in the same market. Many of our borrowers will call us to get a second opinion on a property because they know we have 20+ years of combined experience in the DFW market. confidence Confidence in your lender means an investor can make offers with significant earnest money and no option period in order to get a deeper discount on a deal. $1,900,000 in capital raised & 18 loans funded in 12 months