info@BaltimoreWealthBuilders.com http://www.BaltimoreWealthBuilders.com Did you know you can become the bank and lend money for real estate purchases? Did you know you can earn interest completely tax-free, backed by real property as collateral? Did you know you can invest in real estate out of your IRA using a specific type of IRA? Learn all this and more in the comprehensive guide outlining the basics of private mortgages. We will discuss WHY private lending works and how real estate investors can afford to pay higher rates of interest than what you may be used to earning.

1. Private Mortgage Lending
Learn the basics. Become the bank
Dan Schwartz
Real Estate Investor and Coach
Baltimore, MD

2. Private Mortgage Lending
Learn the basics. Become the bank
All materials available on this training and provided by Equity Merchants, LLC are
samples and for informational purposes only. Equity Merchants, LLC does not
provide legal advice. Although we go to great lengths to make sure our
information is accurate and useful, we recommend you consult a lawyer if you
want professional assurance that our information, and your interpretation of it, is
appropriate to your particular situation. You are solely responsible for ensuring
that your business practices comply with all applicable, local, state & federal laws.

3. Background
Traditional banking is not what it used to be
Investors play a role in economic recovery
Real Estate is “On Sale”

Huge
Opportunity

4. Why Listen to Me?
Started Equity Merchants in 2010 with Co-Founder
Mike Casey
Completed over 100 transactions over next 2.5 years
Close to $1,000,000 borrowed right now for
renovations and rental acquisitions
Spent over $20,000 on education and mentorship

5. Mike and I
www.MasteryCoachingWithDan.com

6. Next Up
What is a Private Money Loan?
What Is the Process? (deal example)
Benefits of Private Lending
FAQ: What are the “Worst-Case-Scenarios?”
Where Do Funds Come From?

7. What is a Private Money Loan?
It is a loan made to a real estate investor secured by
real estate. Private money lenders are given a first or
second mortgage that secures their legal interest in
the property and their investment.
They are becoming more and more commonplace.

8. How Does Your Bank Make Money?
Equity Merchants Cuts out the Middle Man

9. Who is it for?
Ordinary people like doctors, lawyers, accountants,
retirees…etc.
People getting very low, inconsistent returns in
retirement accounts
People that want to invest passively without being a
landlord

10. WHY Does this Work?
Undervalued Real Estate
Marketing for off-market properties

11. WHY Does this Work?
Investors

12. WHY Does this Work?
Undervalued Real Estate
Marketing for off-market properties
Strict Due Diligence Process
Ability to act QUICK!

13. What is the Process?

14. Documents
Promissory Note
Mortgage (Deed of Trust)
Insurance

15. Deal Example
5312 The Alameda
AfterBefore

16. Deal Example
Before
After

17. Deal Example
Before After

18. Deal Example
Purchased for $42,500 via short sale
Private lender lent $65,000 at 10% accrued annually
After renovation, we put tenant in place
and refinanced the property with a commercial lender
Privately Lender received payoff of $68,864
$3,864 passive profit…tax free*

19. Lets Look at Private Lending vs. Traditional Savings
2% Bank CD 10% Private Money Loan
*Assume 150k Invested
2 Months
500
2,500
4 Months
1,000
5,000
6 Months
1,500
7,500

20. Where Do the Funds Come From?
401K (past employer)
Personal or Business Lines of Credit
Savings/Checking Accounts
Traditional and Roth IRAs
Self-Directed IRAs*
Home Equity Lines of Credit
Liquidated Mutual Funds/Stocks/Bonds

21. Self-Directed IRAs
An IRA that requires the account owner to make
investment decisions on behalf of the retirement
plan.
In order to invest out of one, you need to “roll-over”
your IRA funds into a Self-Directed IRA using a 3rd
party custodian (IRS laws)
www.TrustETC.com
www.TheEntrustGroup.com

22. Self-Directed IRAs
The ideal retirement investment vehicle:
Self-Directed ROTH IRA
Allows you to invest and earn money tax-free. You
only pay taxes when you take money OUT at
retirement.
www.TrustETC.com
www.TheEntrustGroup.com

23. Self-Directed IRAs

24. What Happens If Investor Doesn’t
Pay!?
Restructure Payment Schedule
Deed-in-Lieu of Foreclosure
Foreclosure
Lenders will profit after sale of house

25. Is there a Minimum Investment?
Typically depends on the real estate investor’s
program
Deal Specific

26. What if I need to liquidate?
45-90 day written notice required
to replace funds with another investor
Typically no withdrawal penalty
Not Recommended

27. Who handles the details?
Closing Attorney
Real Estate Investor

28. How do you get paid?
Monthly Payments
Lump Sum Payment (Principle + Interest)
Quarterly Payments

29. Can I make long-term loans?
YES!

30. Additional Questions
???
info@BaltimoreWealthBuilders.com

31. Benefits
Produces consistent high returns
Rates do not fluctuate
Straightforward terms
Recorded in land records
Secured by equity-rich and marketable real estate
Tax-free wealth building

32. Benefits
Passive Income (minimal time required)
No dealing with tenants or contractors
Profitable with NO CAP on earnings
More time to improve your golf game
Multiple loans can be made
Booming industry

33. Private Mortgage Lending
Learn the basics. Become the bank
info@BaltimoreWealthBuilders.com
Office Line: 443-848-8028

34. Disclaimer
This is not an offer to sell securities. Any person, entity, or organization must first be
qualified by the company and read all of the offering documents and attest to reading and
fully understanding such documents. Equity Merchants, LLC and its affiliates are not
licensed securities dealers or brokers and as such, do not hold themselves to be. This
presentation should be construed as informational and not as an advertisement soliciting
for any particular purpose. All securities herein discussed have not been registered or
approved by any securities regulatory agency in accordance with the securities act of 1933
or any state securities laws.