Private Hard Money Lending

1. Private Hard Money Lending 26711 Woodward Ave. Suite 301 Huntington Woods, MI 48070 www.Metro-Mi.com (248) 547-3006 “Your success is our success.” ~ Trent Dalrymple Director, Investor Relations – Metro Mortgage Investments Metro-Mi.com

2. What is Hard Money? • A hard money loan is loan where a borrower receives funds secured by real estate. Hard money loans are typically issued at much higher interest rates than conventional loans. • Many hard money mortgages are made by private investors, generally in their local areas. Source: http://en.wikipedia.org/wiki/Hard_money_loan Metro-Mi.com

3. Is it Regulated? • Mortgage Brokers, Lenders, and Servicers Licensing Act – MCL 445.1651 • Mortgage Loan Originator Licensing Act – MCL 493.131 • Secondary Mortgage Loan Act – MCL 493.51 • Consumer Financial Services Act – MCL 487.2051 • Consumer Mortgage Protection Act – MCL 445.1631 • Mortgage Lending Practices Act – MCL 445.1601 • Regulation X – RESPA • Regulation Z – TILA • Regulation B – ECOA • Fair Credit Reporting Act • Various FTC Rules • Safeguard Rule • Red Flags Rule (ID Theft Prevention) • Risk-Based Pricing Rule "Mortgage loan" means a loan secured by a first mortgage on real property located in this state and used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families or a land contract covering real property located in this state used, or improved for use, as a dwelling and designed for occupancy by 4 or fewer families. Metro-Mi.com

4. Why Hard Money? • Faster Process • Flexible • Lend using ARV • Leverage Equity • Higher Debt Ratio • Distressed Property Metro-Mi.com

5. Leveraged Investing Your out of pocket costs: $6,750 – Closing Costs $2,500 – Property Tax Impound $5,400 – Monthly Interest $14,650 Return on Investment (ROI)

6. Purchase-Rehab Loans • Borrow against the projected After Repair Value [ARV] • Purchase Price + Repair Costs • Setup Fund Control • Release as Repairs Completed Metro-Mi.com

7. Property Requirements • Brick • 3 Bedrooms + • Basement • Garage Required • Pride-of-Ownership Neighborhood Metro-Mi.com

8. Appraisals • Specialized Appraisal • List of Required Repairs by Licensed Contractor • Predominant Sales • Company Approved Independent Licensed Appraiser • Desktop / Full Appraisals Metro-Mi.com

9. Borrower Profile • Home Owner • Experience with Property • Ability to Repay • Credit History • NO Recent Foreclosures • NO Current Bankruptcy • NO Consistent Negative Issues Metro-Mi.com

10. Be Prepared • Appraisal • Loan Application • Credit Report • Income Documents • Title Commitment • Purchase Agreement Metro-Mi.com

11. Be Prepared • Cash into Project • Minimum 10% • Realistic Exit Strategy • Extension Available • Property Taxes • Escrowed / Impounded • ACH Payments • Automatic Withdrawal Metro-Mi.com

12. Michigan Programs & Fees • Real Estate Investor • Interest Only • Foreclosure Rescue • Homeowners • Amortized • Seller Holdback • Lien of Interest • Application Fee • Appraisal Fee • Interest Rates • 14% to 18% • Closing Costs • 6 to 10% • $3,000 (min) Metro-Mi.com

13. The Corporate Team • David DiMeo, President & Broker • Over 15 years experience in providing privately funded mortgages • Business Development / Service Partner Agreements • Loans Programs / Underwriting Guidelines • NMLS# 171942 • Trent Dalrymple, VP Investor Relations • Over 25 years experience as private mortgage professional • Loan Origination / Account Management • Training / Public Affairs • NMLS# 166179 • Anne Pancost, Quality & Compliance Officer • Over 20 years experience in banking industry • Senior Internal Auditor / Certified Bank Auditor • Office Manager

14. www.facebook.com/metromi www.metro-mi.com