Down Payment Bonds are a simple, secure and cost effective way to to efficiently use your assets to purchase property under development.

1. What is a Down Payment Bond?
The flexibility to purchase property
while leaving your investments intact

2. What is a Down Payment Bond?
A Down Payment Bond is a form of a
promise to pay / guarantee, that is issued
on behalf of the purchaser to the seller for
the purchase of real estate.
Down payment Bonds are a form of a financial guarantee or
simply put “promise to pay". This down payment bond is
accepted in lieu of cash when the purchaser must pay deposit
monies to financially secure their commitment to purchase
Real estate. The down payment bond acts exactly the same as
if you would have placed a cash deposit into escrow.

3. What is a Down Payment Bond?
By using a down payment bond, it allows
you to keep your money working for you,
right up until you need to close.
It’s a smart, safe and simple way of securing your real estate
purchase quickly, without having to tie up your money. By using
a down payment bond, it allows you, the purchaser to secure
your purchase without tying up your funds, liquidating any
assets , breaking any CDs and or similar. More importantly, it
allows your money to remain working for you, right up until the
time you are required to close on the purchase, at which point
you will then use your funds and or finance to close the
purchase price in full. It is one of the most efficient means in
securing a financial commitment towards the purchase of real
estate in the US today.

4. Are there risks?
Yes, there are risks associated with using a
down payment bond
In the event a purchaser cannot complete the closing of the
purchase, the seller will be entitled to keep the down
payment /deposit. Such an event will constitute a default on
behalf of the purchaser. At that time the seller will make a
demand for payment on the down payment bond at which
point the insurance company will and is obligated to pay in full
to the seller, the value of the down payment bond. Down
payment bonds are a form of financial guarantee and NOT an
insurance policy. Purchasers CANNOT walk away from a down
payment bond without risking a default listing on their credit
rating and being subject to a full legal recovery process.

5. When do you use a
down payment bond?
Any real estate purchase that may not be
complete for months or even years.
A purchaser who has found an ideal property that is currently
being marketed off the plan. The project will not be completed
for another 2 years. The purchase price is 450,000. The seller’s
requirement is for a 20% deposit, the purchaser must deposit
90,000 into escrow. The purchaser is desirous of this property;
however, they do not have the liquidity right now to pay
90,000. The purchaser does have equity, earns good income
and knows he can afford this. The solution, a down payment
bond. Down Payment Options will underwrite the purchasers
financial statements along with income and credit score, and
on approval issue the client a down payment bond for 90,000
for 2 year duration as requested by the seller. The total
premium for such is approximately is 8,550 plus state taxes, as
opposed to locking up 90,000 for 2 years. Best of all, Down
Payment Options can have this bond issued within 2-4 days.

6. What are the requirements for a
down payment bond?
In essence it’s the same process as one
would apply for a loan. However, far more
simply.
All applicants will complete the Down Payment Bond
application. Down Payment Options (DPO) will review the
application and conduct a credit analysis. Upon review, DPO
will send correspondence to confirm a preliminary approval to
proceed, subject to documents that the purchaser will provide
for verification. All required information will be outlined in the
correspondence. This process makes it easy for the applicant to
be guided through the application to approval process far
more simply.

7. Real World Scenario
"Using a deposit bond was the solution to enable me to achieve
my real estate investment goals while still allowing me to keep
cash on hand to earn a higher rate of return! No doubt this will
be the critical tool for investors at all levels to leverage their
assets to maximum benefit. I highly recommend everybody
consider this new and savvy alternative for all their real estate
purchases. Thank You
Patrick Llewellyn - Mortgage Professional, Las Vegas, Nevada

8. Real World Scenario
"They assisted us greatly with our sales in Australia, with issuing
bonds that greatly assisted for the successful marketing
campaigns for Altitude, Zest, Volt and Aura within Australia and
their assistance achieved very good volume levels there. They
proved to be extremely helpful, efficient and diligent in the
reviews and approvals of our bond deposit purchasers, and
there after sales/settlements assistance was indeed greatly
appreciated. The deposit bond product is accepted by all the
primary mainstream lenders such as the major for trading banks,
ANZ, Westpac, NAB, Commonwealth Bank within Australia and
New Zealand. Deposit bonds are very simply standard
procedure within Australia and New Zealand and are all very
much parts of our landscape."
Robert Holden – Director, Conrad Properties Limited

9. Real World Scenario
"My group and I really appreciate your help and service in
getting our Deposit Bonds for the purchases of property in
Australia….. I found out about Deposit Bonds from my realtor in
Australia so I had an idea of how it worked. My partners and I
like the Deposit Bond approach, especially for long term
construction projects. A group of individuals did not have to
outlay as much funds to control two units for a long period of
time…"
John “Randy” Wedum – Architect, Aspen, Colorado

10. Real World Scenario
"The deposit bond assisted me in purchasing a new condo in
Arizona, and allowed me to still hold onto my own money, to
use it in any way that is best for me. The employees of the bond
company were very friendly and helpful and I would definitely
use their services in the future."
Steve - Chicago, Illinois

11. Real World Scenario
"I was on location in Costa Rica finishing a commercial real
estate development when I found the condo that I wanted to
buy in Vegas. The team worked with me to put a deposit bond
in place that allowed me to conserve my cash and use it on my
Costa Rica project. They were very accommodating and
creative in working with me from another country."
Benjamin Hadary - Developer, Galeria Conchal, Guanacaste,
Costa Rica

12. Real World Scenario
"Gemstone Development, the developer of the MantattanWest
project, located in Las Vegas is using Deposit Bonds as an
acceptable method for the purchase deposit required under
our Purchase and Sale agreements.
Our buyers have responded well to the idea of Deposit Bonds.
Even if they have the funds to pay cash for an earnest deposit,
they realize that this is a cost effective way to secure the
property. I thoroughly recommend the product. "
Alexander Edelstein - CEO, Gemstone Development

13. Real World Scenario
"ANZ has provided funding to developers who have accepted
Deposit Bonds in support of "off the plan" sales contracts. Of the
available Bond products in the market QBE is an appropriately
rated underwriter to the satisfaction of ANZ."
Tony Murray - Head of Insurance Risk, ANZ Insurance, ANZ Bank
Australia

14. Real World Scenario
"St. George Bank accepts Deposit Bonds as a Legal form of
deposit in regards to the purchase of a residential house or unit."
Bradley J Squire - Executive Manager, Credit & Administration,
St. George Bank

15. Real World Scenario
"Scott Financial Corporation has recently discovered a viable tool to
assist the Lending Industry in improving commercial real estate
underwriting by enhancing the required sales deposit amount
requirements. It truly is win-win-win. The Buyer, for a small fee, can
better manage their cash required upfront for the deposit until their
real estate closing.
The Seller/Developer can require a larger amount upfront in the
sales deposit, while providing a vehicle to fund the increased
amount. Finally, the Lender has improved underwriting; by obtaining
increased non-refundable sales deposits facilitated through the
insurance bond. The application process in the underwriting goes a
long way in qualifying the buyers for the Project. As lenders continue
to require larger non-refundable deposits for sales or upgrades; this
vehicle offered will have increasing use in the lending industry."
Brad J. Scott - Development Financier

16. Real World Scenario
"It is common practice for the Bank to recognize as a
constituting valid deposit, a Deposit Bond."
Mario Caleite - Director, BankWest

17. Connect with Us!
Down Payment Options
410 S. Rampart Boulevard
Suite #390
Las Vegas, NV 89145
Tel. 1.702.726.6818
info@downpaymentoptions.com
www.downpaymentoptions.com