Local. Honest. Professional. Company Name BWD Capital, LLC - - PowerPoint PPT Presentation
Local. Honest. Professional. Company Name BWD Capital, LLC Company President Dave Drew Company Address PO Box 231 Vestal NY 13851 Company Phone 607-216-4420 Company Email bwdcapital@yahoo.com Company
Unlike bankers and real estate agents,
time solving problems for investors who want to make more money. In business since 2016 we have completed a wide array of deals ranging from rentals, flips, contract sales and holding mortgages.
Buy & Hold Rentals – Investor buys property with the intention of keeping it and renting to tenants. These deals could be turn-key and ready to rent, may or may not already have tenants, or, they could be dilapidated and in need of repair.
Wholesaling – Investor markets toward a specific type of seller. They agree on a purchase price, usually at a deep discount. Once under contract, the wholesaler sells that contract on the open market to another investor, who wants the
for selling the contract.
Holding Mortgages- a.k.a. ‘Holding Notes.’ Mortgage-holders are lenders who agree to finance purchase (or refi) money for real property. In return, borrowers agree to pay the lenders a monthly interest fee.
Holding a mortgage is an example of a passive real estate investment. There is no land-lording, no collecting rent, no evictions and no fixing broken toilets.
The average savings account pays .06% interest. Savings Accounts, CDs and Money Market Accounts can not match he rate of inflation. Certificates of Deposits (CDs) pay an average of 1% returns on an annual basis. Financial Management Companies promise big returns for big risks and charge 1%-3% in management fees. Inflation ensures that your money loses about 2% of its value each year.
Low Risk – Real Property values in BC have remained stable through even the worst crises of the last 15
equity because they are bought at deep discounts. Low Barrier to Entry –With the depressed economic market, an investor with cash- in-hand can find great deals. Great Rental Market –The Binghamton area produces higher rent-to-value ratios than many parts of the country and certainly better when compared to larger metro areas. When comparing rent to property value, the 2% rule applies. E.g., if prop value is $50k, rent should be $1000. We are finding many deals where rent to value ratios are closer to 3%!
An investor approaches the business about financing a deal on a house she plans to flip. Purchase price was $15k with the After Repair Value (ARV) somewhere around $40k. The property needed about $5k in work. After a brief application process and a credit check, the deal can be financed at $12,500. Terms of the deal are that principal would be amortized over 30 years at 8% interest (more than twice the prime market rate) with a balloon payment in 5 years. Payments are $93 per month. Held for 5 years, the borrower will have paid the lender $4,887 in interest and owe $11,884 at the time of the payoff. This nearly a 40% profit over the life of the investment.
Deal Summary 123 Main St Purchase Price $15,000 Loan Amount $12,500 Cumulative Interest $4,887 Principal Payoff $11,884 Mort Expenses $0 ROI 39.10%
Cumulative Interest $4,886.99 Cumulative Principal $616.21 $0.00 $1,000.00 $2,000.00 $3,000.00 $4,000.00 $5,000.00