Build Wealth Today
With Double Digit Returns,
No Commissions & Predictable Results
Investment Marketplace
What Are Your Investment Objectives?
• Security
– CDs
– Corporate Bonds
– Government Bonds
– Fixed Annuities
• Higher returns
– Stocks
– Mutual Funds
– Variable Annuities
Bank Of America: CD Rates:
Annuity Rates:
Bond Rates:
S&P 500: Last 5 Years:
S&P 500: Last 10 Years:
Precious Metals April 2011 – April 2013
What is a Self Directed I.R.A?
• A Self Directed IRA is an IRA where the owner is
required to make their own Investment decisions.
• Non- Traditional Assets: Like real estate, LLC’s, oil and
gas, etc
• Self Directed IRA custodians (Like The iPlan Group who
I use) set up real estate investments inside of an IRA.
• Any 401k, IRA, ROTH IRA, SEP IRA or HSA acct owner
can make investments like real estate in those accts
• Sample Investments
– Note (I.O.U) w/ Mortgage
– Buy stock in a company
$500,000 Mutual Fund Investment
• American Funds = Small Cap World
• Exp ratio = %1.09 (paid to the fund manager)
– @ 10% = $50,000 Profit / ROI
– @ 8.91% = $44,550 Profit / ROI
• “A” Share Commission
– (paid to the financial advisor who sells this mutual fund to their client)
– $500,000 = 2% (breakpoint) = $10,000
• $500,000 - $10,000 = $490,000 - $5,341 (%1.09 exp ratio) =
$484,659 left (zero ROI)
• $15,341 dollars in FEES for American Funds
• $1,500 dollars in FEES for Equity Trust (self directed IRA)
Share Classes
• Class “A” Shares – up front commission
• Class “B” Shares – back end commission &
higher expense ratio
• Class “C” Shares – small annual commission &
highest expense ratio
“LOAD” / “NO LOAD”
• Load = Commission
• No Load Fund = No Commissions
• Paying a money manager = charge a money
management fee
– EX: Sell no load funds BUT charge 1% money
management fee + 1% expense ratio
Variable Annuities
• Act Very Similar A Mutual Fund
– BUT
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•
•
•
•
Access To 40 Funds Within The Annuity
Transfer From Fund To Fund With No Expense
3% Commission Up Front
AND
2% Exp Ratio Per Year Every Year
Our Mission Statement
To Provide Our Investors Double Digit
Investment Returns By Matching Our
Knowledge And Acquisition Of
Undervalued Real Estate Assets With
Investors Looking For Investment
Alternatives And Double Digit Returns.
Company Overview
Millennium Capital
Investments
A real estate investment firm
created to purchase, manage and
sell single, multi-family and
commercial dwellings primarily in
the Cleveland, Ohio area.
One and Only Goal
To Significantly Increase The
Wealth Of Our Private Investors With
Double-digit Returns Plus
Upside Bonus Potential .
How We Acquire Properties
• Private Individuals.
• Realtors.
• Pre-Foreclosures.
• Foreclosures & REOs.
Testimonial
ACTUAL LETTER
“Over the last 6 years, while everyone else lost money,
especially in 2008, I’ve been earning 10% EVERY SINGLE YEAR.
I’m so glad I got involved with you when I did. It’s meant tens
of thousands in interest I would have lost in the market or
never earned in CD’s. ”
Cindy Heilman
Brunswick, Ohio
Testimonial
ACTUAL LETTER
“When we looked at our statements we could never tell if we
were making money or loosing money. It just went up and
down every month with no real progress. Plus our advisor
never called us to make adjustments. Now I know we are
making real progress towards our financial goals. 10% or
more every month! You can’t beat it!”
Mike and Mary Tucciarone
Brunswick, Ohio
Testimonial
ACTUAL LETTER
“You were like an answer to our prayers. You always had our
personal needs in mind. We felt very comfortable putting our
home in your hands. Thank you again for helping us. ”
Your friends,
Rev. Willie and Cathi G.
Medina, Ohio
Fall 2012 Current Projects
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8973 Fairpark,
Canal Fulton
Paid = $45,500
Rehab = $25,500
Total = $71,000
Listed = $159,900
Profit = $88,900
Fall 2012 Current Projects
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•
•
•
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•
193 Heights Drive
Northfield
Paid = $45,000
Rehab = $26,000
Total = $71,000
Listed = $144,900
Profit = $73,900
Fall 2012 Current Projects
•
•
•
•
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•
•
4034 Manchester
Portage Lakes
Paid = $32,000
Rehab = $38,000
Total = $70,000
Listed = $139,900
Profit = $69,900
Fall 2012 Current Projects
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•
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•
5494 Main St
Akron Ohio 44319
Paid = $52,000
Rehab = $22,000
Total = $74,000
Listed = $149,900
Profit = $75,900
Fall 2012 Current Projects
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•
•
•
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•
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3332 Marmore
Parma
Paid = $30,000
Rehab = $4,000
Total = $34,000
Listed = $69,900
Profit = $35,900
Fall 2012 Current Projects
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•
•
•
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•
7493 Ballash
Medina
Paid = $52,000
Rehab = $32,000
Total = $84,000
Listed = $159,900
Profit = $75,900
August 2011, Case Study #17:
4259 Tapper Trail, $24,500 Profit
December 2011, Case Study #21:
2093 Conwill, $31,000 Profit
November 2011, Case Study #19:
1496 Milan, $41,300 Profit
Before and After
Invest in Northeast Ohio
• The Cleveland-Akron area is made up of
8 major counties and is the 15th largest
consumer market in the U.S. with
approximately 2,950,000 residents.
• Nearly 35% of Ohio’s population is
within Cleveland-Akron’s area of
dominant influence.
• Over $1 Billion in residential and commercial development is planned for
greater Cleveland over the next 5 years. “Flats renovation, Euclid Corridor
Project, Steel Yard Commons, Downtown condo development, East 4th Street
Project.”
IRA Eligible
• Individual Retirement Accounts qualify,
including Roth’s.
• Allows you to self-direct your
investments.
• 3rd Party Administrator sends money to
title agent’s escrow account.
• Title agent sends all money back to 3rd
Party Administrator.
– Equity Trust Company.
– Nation’s foremost self-directed
custodian.
– Premier customer service.
Security
Mortgage
Note
November 2011, Case Study #19:
1496 Milan, $40,000 Profit
Private Lender
Program Overview
• We buy houses.
• We borrow money from
private lenders to fund our
deals.
• We pay 10% fixed returns
~OR~ 20% of the profit,
WHICHEVER IS GREATER.
• We have a formal closing and
you get a mortgage on the
home at a reasonable L.T.V.
• Title Insurance and hazard
insurance protect you.
• Private funds allow us to
purchase at a discount.
$50,000 Investment Example
Type
Yield
12-Month
Return
Bank CD
1.5%
$750
RE Investor
10.00%
$5,000
Annual
Increase
$4,250
In 5 years, your investment could grow to $75,000!
Investment Documents
• Promissory Note for loan
amount.
• Recorded Mortgage at
reasonable 65% L.T.V.
• Hazard Insurance Policy,
lender named as a loss payee
paid for by borrower.
• Title Insurance lender’s policy
paid for by borrower.
Actual Investment Example
4904 S. Hametown Road

Appraisal Value: $124,900

Loan/Investment: $59,500

Purchase Price: $35,000

Renovation Cost: $24,500

Resale Price: $114,900

Gross Profit: $55,400 minus closing costs

Net Profit: $45,000

Interest to Private Lender: $9,000
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20% of the profits
Return of Investment: 30.5%
Investor: 30.5% Return on
Investment;
Principal and Interest
returned to Investor in 6
months
Investor Benefits
• Investor income:
– $59,500 (loan) x 30.5% = $18,147 annually.
– Monthly interest = $1,512.29.
• Investor is “THE BANK”
– First lien-holder.
– DUE ON SALE of the asset providing protection of principal.
– No personal or property liability.
– No property management.
Actual Investment Example
1496 Milan Road

Appraisal Value: $139,900

Loan/Investment: $80,000

Purchase Price: $46,000

Renovation Cost: $34,000

Resale Price: $129,900

Gross Profit: $49,400 minus closing costs

Net Profit: $40,000

Interest to Private Lender: $8,000
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20% of the profits
Return of Investment: 16%
Investor: 16% Return on
Investment;
Principal and Interest
returned to Investor in 8
months
BEFORE
AFTER
Security
Mortgage
Note
Investor Benefits
• Investor interest and profits:
– $80,000 loan: $8,000 in interest in 8 months = %16 ROI.
– $80,000 (loan) x 16% = $12,800 annually.
– Monthly interest = $1,066.
• Investor is “THE BANK”
– First lien-holder.
– DUE ON SALE of the asset providing protection of principal.
– No personal or property liability.
– No property management.
*Current Investment Opportunity*
1467 Sunny Acres Copley Ohio

Appraisal Value: $139,900

Loan/Investment: $80,000

Purchase Price: $53,000

Renovation Cost: $27,000

Resale Price: $139,900

Sold for $125,000

Gross Profit: $59,900 minus closing costs

Net Profit: $40,000 Sold May 20th 2012

Interest to Private Lender = 10% fixed OR 20% of
profits


20% of the profits = $8,000
Return of Investment: 20%*
Investor: 20% Return on
Investment;
Principal and Interest
returned to Investor in 6
months
*Bonus*
• Millennium Private Lenders receive 12% fixed interest ~OR~
15% of the net profits on the resale whichever is greater.
Rent To Own Homes
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•
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Growing demand due to foreclosure crisis & credit crunch.
We help families go from renters to owners.
They can achieve the American dream of homeownership.
They treat the house like it is theirs because of large down
payments.
Actual Investment 2011
4259 Tapper Road Norton, Ohio
 Appraisal Value: $119,000
 Loan/Investment: $50,500
 Purchase Price: $33,500
 Renovation Cost: $17,000
 Resale Price: $95,000
 Tenant: Down Payment = $7,000
Monthly Payments
Investor: $420
Taxes & Insurance: $185
Tenant Rent: $800
Net Income: $195
3 Step Process
1. Set Up A IRA Acct = Equity Trust
2. Fund The Acct =
1. Rollover = from 401k or 203b
2. Transfer = from another IRA
3. Make An Investment
R.O.I. OFFER
•
•
•
•
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12% interest
~OR~
15% of the profit
Whichever is greater
If they fund an entire deal
Millennium Capital Investments
Works Hard So You Can Relax
• Locate potential properties.
• Perform property analysis and
due diligence.
• Process and evaluate foreclosures
from “Legal News.”
• Monitor property’s foreclosure
proceedings at courthouse and
through media.
• Address Realtor questions.
• Interface with Equity Trust Co.
• Provide presentations to
investors.
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Negotiate offers.
Coordinate and oversee inspections.
Coordinate closings.
Research marketplace.
Perform marketplace analysis.
Develop marketing plan.
Coordinate title searches.
Arrange and oversee inspections.
Review settlements for accuracy.
Inspect properties on an on-going
basis to ensure tenants adhere to
lease agreement.
Millennium Capital Investments
Works Hard So You Can Relax
• Procure tenants for rentals and
lease-purchases.
• Screen tenants for credit
worthiness, employment and
rental history.
• Create ads and signs for
advertising available properties.
• Put out lock boxes and signs.
• Obtain constant training through
Real Estate Investment Assoc. of
Cleveland and National Real
Estate Investing Association.
• Manage database.
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Call lenders weekly.
Interface with insurance company.
Schedule showings.
Hold open houses.
Coordinate and monitor property
renovations.
Negotiate with subcontractors.
Monitor property renovation
budgets.
Negotiate with homeowners.
Prospect for new clients.
Collect monthly rentals.
Program Guidelines
•
•
•
•
Each loan gets a mortgage.
$50,000 and above, you typically get a 1st mortgage.
$10,000 to $50,000, you typically get a 2nd mortgage.
No bundling or combining of funds.
Investor Payments
•
Quarterly.
~OR~
•
Annually.
~OR~
•
Interest accrues monthly – full payment of principal and
interest when property is sold.
You pay no
transaction fees
or closing costs!
Early CD Withdrawal
• A bank’s average penalty on a $50,000 CD is
$750 (6 months interest @ 3%).
• Millennium Capital may pay your withdrawal
penalty.
IRA Eligible
• Individual Retirement Accounts qualify, including Roth
IRAs.
• Allows you to self-direct your investments in real estate.
• 3rd Party Administrators.
– Equity Trust Company
(Elyria, Ohio)
Alternate Investment Opportunities
• Seeking longer term
investments.
• Smaller amounts of
capital to invest.
• Good potential to grow
smaller IRAs.
Passive Investor Profile
• Want to increase your R.O.I.
• Want some collateral to protect investment capital.
• Have liquid assets ($50k) available to invest for 2 - 5+
year term.
– Savings accounts
– CDs
– IRA
Investment Alternatives
• Transition to a secured investment.
• Collateral-based.
• Fixed returns.
• Better protection of
principal.
What Do Smart Banks Know
About Investing? Plenty!
• Banks lend heavily in Real Estate.
• They take in money on CDs (ex. 2%).
• Then loan the money out at a higher rate of interest
to other people to buy houses (ex. 5%).
• This is called “Arbitrage.”
You can be the bank.
What Does Arbitrage Mean?
The simultaneous purchase and sale of an asset in order to profit
from a difference in the price. It is a trade that profits by
exploiting price differences of identical or similar financial
instruments, on different markets or in different forms.
Arbitrage exists as a result of market inefficiencies.
Read more:
http://www.investopedia.com/terms/a/arbitrage.asp#ixzz1bjRmwFX4
Building Wealth
By Becoming “The Bank”
• Private Lender Program
– No hassles, no fees.
– Fixed double-digit returns plus bonuses.
– You determine your levels of risk.
– Profitability - Safety - Security.
Scenario #1:
“Short Term Double-Digit Interest”
1. Our company locates a property.
2. Our company purchases the property at
40-50% of its real value.
3. Private individual lends us money via wire
transfer to escrow agent.
• Investor lends from account they
control.
• Money goes to title agent’s escrow
account.
4. The private individual receives documents
(note and mortgage) to secure investment
at formal closing.
Private Lender
Quick-Turn Program Overview
• Private funds allow us to purchase at
a discount quickly.
• We have a formal closing with a
HUD1 settlement statement.
• Title Insurance to protect all parties.
• We then quickly resell the property
using 7 different strategies.
• The private lender’s money is
returned to them with interest
and/or profits.
Scenario #2: “Long Term Interest”
1. Our company locates a property.
2. Our company purchases the property.
3. Private individual lends money via
transfer to escrow agent.
4. They receive documents to secure
investment at formal closing.
5. Our company finds a tenant-buyer.
6. Our company collects the rent from tenant buyer which covers
payment to private lender plus other expenses plus monthly profit.
7. Our company writes a check for interest payment to private lender
quarterly or annually.
Program Guidelines
• Each loan is secured by a note.
• A mortgage is recorded in
public record to secure the
note.
• We typically need $50,000 $100,000 for quick-turn loans.
Protection of Principal
• #1 Rule: Money borrowed
is no higher than 70% loanto-value; after repair value.
• We then build in more
equity by renovating the
property.
• Independent appraisals
done upon lender’s
request.
Because we don’t over-leverage
the property, you get additional
security.
65% Loan-To-Value (ARV) Rule
We Don’t Break This Rule!
100%
appraised
value
65% loan to
value
In the Event Something Happens
to a Key Owner
• Millennium Capital Investments will continue on in business.
• Single family homes are easier to sell/liquidate.
• Properties can be sold if necessary, and your principal and
interest will be paid.
Give Yourself the Gift of Time
Your Quality of Life Is Important
Peace of mind for us in
retirement is priceless.
Thanks, Mom and Dad,
for the gift of
education.
We now enjoy a
more relaxed
lifestyle.
The Next Step?
• We will answer any questions you have.
• Now that you know how you can earn double-digit
returns on your investments…
– Sign up today for a private meeting.
• Also, do you know someone else who may want to
earn double-digit returns?
Join our team of Private Lenders
Millennium Capital Investments
Private Investing
216-233-5448
[email protected]
www.millenniumcapitalinvestments.net
Investing Solutions