Guide
for the
Investment
Broker
American Equities, Inc.
“A tradition of trust since 1979”
A
American Equities, Inc. (“AEI”), founded
or trust deed, it offers unprecedented speed
Trust Deed and experience paper purchasing in
in 1979, is an investment company special-
in closing a transaction for the cash-needing
a whole new light. You have nothing to lose,
izing in purchasing, servicing and selling first
customer — typically five day closings.
except wasted time!
secured by single and multi-family residenc-
When you present AEI a note to be pur-
What Makes Us Unique
es, income-producing property mobile homes
chased, a competent, courteous trained ana-
■ You deal directly with principals who are
and improved or unimproved land. Our lon-
lyst will give you immediate attention and
gevity is the result of intelligent financial sta-
pricing options. No longer will you have to
■ Because we represent a number of
bility and commitment to unparalleled cus-
wait long periods of time while your sales
private and institutional investors with
tomer service. AEI has established its well-
package is shuttled from one processing sta-
varied needs, we generally are able
earned reputation on personal and honest
tion to another often located in distant offic-
to pay more for receivables.
customer service — assuring you that every
es.
■ Flexible guidelines.
position mortgage loans and trust deeds
transaction will be treated competently and
using their own capital for rapid response.
■ We offer a partial purchase program,
confidentially. AEI handles every transaction
Competitive Pricing
buying only a portion of the contract
the same way — with fast, personalized
In most cases, AEI will meet or beat any
payments.
attention from knowledgeable, in-house
qualified, competitive offer but at a process-
■ We provide creative solutions to
receivable purchasing professionals.
ing speed not likely before encountered. Call
AEI with your next Real Estate Contract or
■ Immediate in-house decisions.
problem receivables.
Quick Local Decisions
Most importantly since AEI uses its own
capital to purchase each real estate contract
Solid
Security
C
Broker
Commissions
Commission
determination of special payment options.
AEI will pay commissions from the difference
between the amount AEI is willing to pay for
a note and the price the note seller your client, is willing to accept. There is no limit on
the amount you can earn when you broker a
note to AEI. Please fill out the enclosed
“Broker’s Worksheet” located in the back
pocket of this informational guide and furnish
it with the Quote Information and applicable
Property Profile form. That’s all there is to it!
Partial Purchase:
Purchasing Programs
This will allow the seller to obtain just the
amount of cash required, while still leaving
the balance of the receivable intact.
AEI offers several types of purchasing programs to meet virtually every seller's need,
There are two ways to obtain immediate
cash:
Full Purchase:
1) AEI will purchase the seller's entire contract or trust deed:
AEI will purchase all the remaining payments
with one total sum at closing. For special
situations, AEI’s flexibility will allow case-bycase review of real estate receivables for
Providing the seller with several benefits:
2) An important feature of AEI’s service is its
ability to purchase just part of the sellers real
estate receivable. If you find that a seller
doesn’t wish to sell the entire contract, AEI
can purchase a portion of the receivable - a
specified number of payments — from the
front end of the contract.
Split Partial purchasing allows AEI to acquire
only a portion of each installment for a
specified time, leaving the seller with the balance of each installment payment.
Future Versatility. Following completion of
AEI’s partial purchase contract, the seller
begins collecting payments again on the note.
The seller then has the ability to sell another
set number of payments, or if desired, the
balance of the note.
New Notes
Notes that are unseasoned can be purchased
in one of two ways:
1) AEI can purchase the entire note when a
purchaser with approved credit rating has at
least 10% equity in the property.
2) AEI is also able to effect a partial purchase
under the criteria detailed under Partial
Purchase.
Collections
AEI is a full service licensed contract collection agency. Regardless of the type of partial
purchase made, the seller obtains a number
of benefits. AEI has over 30 years of
in-house payment collection
expertise that will go to work for
the seller. AEI will take care of
all the paperwork, accounting
mailing, past due notification,
amortization schedules and
collection of payments due.
AEI also supplies complete
tax statement information
to make year-end reporting requirements easy.
Collection on creative financing agreements which include wrap-around provi-
sions, variable interest rates, multiple disbursements or balloon payments will also be
accommodated. The seller's worry concerning payment collection is eliminated while
enjoying the convenience of having cash in
hand to invest in any number of ways:
■ Buy the business he's always wanted.
■ Pay off accumulated bills or high interest
credit cards.
Collection Alternatives
In the event the seller continues to hold the
receivable, AEI can still take the worry out of
the collection process by accepting payments
on his behalf, calculating the principal and
interest, disbursing checks and providing
reports detailing interest paid and received
annually. With AEI acting as an independent
buffer, the holder of the receivable eliminates
unpleasant collection problems.
■ Finance a college education.
■ Take the dream vacation he's waited
for all his life.
■ Upgrade to that larger boat he's been
thinking about.
■ Free himself from foreclosure worries
should the borrower default on payment.
Full Menu
Purchasing
T
Transaction Speed
AEI’s real advantage over competitive buyer’s
of real estate notes is its ability to close
within a typical five day period. From the
moment quote information is furnished to
AEI, a professional analyst begins working to
provide you with one or more pricing options
on how AEI can purchase the receivable. We
continually strive to offer flexibility in dealing
with problem receivables, and transaction
speed is one of our company’s clear goals
and routine achievements. In the back of this
informational guide, you will find a Quote
Information Form. Also included are detailed
information forms (Consumer Profile Form/
Property Profile Form) to allow for the fastest
possible transaction closing speed. The more
complete the information you supply to AEI,
the faster the entire process is concluded
placing cash in your client’s hands.
Transaction Service
AEI has always been committed to customer
care and service. Our newly computerized
state-of-the art purchasing/processing system enables us to serve our customers with
unparalleled speed and service. Every mem-
ber of the AEI team is trained to treat you and
your transaction with careful attention to
detail in order to facilitate the fastest closing
possible. We stake our reputation on it and
believe it is essential in establishing profitable
long-term relationships with each and every
AEI client / broker.
Property Purchase
Rates
When AEI quotes the purchase price of a
note, we will be using our current base rate
while taking into consideration the purchaser’s equity, seasoning of the note, payment
history, credit rating and the amount of the
note. Each note is evaluated on a case-bycase basis.
Appraisal, Insurance
& Reports
AEI pays for all appraisals on property, title
insurance and credit report costs. Upon
receipt of an AEI approved appraisal, title
report, insurable documentation and credit
report, all of which AEI can typically acquire
within five working days, a purchase offer
made is ready for funding.
Loan-to-Value Ratios Summary
AEI bases its purchase price on a percentage
of the sales price or appraised value - whichever is appropriate when determining a purchase price on a receivable. The following
summarizes AEI’s current loan-to-value
ratios, but special circumstances may cause
these numbers to change (either up or
down):
■ Single Family Residential
80%
■ Multi-Family Residential
75%
■ Mobile Homes (with land parcel) 70%
■ Unimproved Land
60%
■ Improved Land
Variable
■ Commercial Property
Variable
(no EPA problems)
Detailed Property
Information Loan-to-Value Ratios
For any Real Estate Contract or Trust Deed
purchased by AEI regardless of property type,
AEI will typically generate it’s own current
appraisal of the property. AEI will always
generate its own current credit report.
However, please include a credit report if
available.
Loan to
Value Ratios
For any AEI purchase to occur; a
Quote Information form must be submitted. To facilitate closing, the documents
required in the Property Purchase Checklist
(1st or 2nd Lien) must be submitted.
Single Family Residential
(Does not include duplex, triplex, fourplex,
mobile home or condominium-townhouse)
1) Loan-to-Value
80% Maximum
2) Balloon Percentage
Variable
3) Qualification Requirements:
The value of the residence must be equal to
or in excess of the property sale price.
Multi-Family Residential
1) Loan-to-Value
2) Balloon Percentage
65%-75% Max
Variable
access to utilities and are legally and
feasibly ready to build out)
1) Loan-to-Value
65% Maximum
2) Balloon Percentage
Variable
3) Qualification Requirements:
Property must be improved, if applicable,
with a structure, road, water/well, power
fencing, crop, harvestable timber; septic/
sewer; and platting.
AEI will determine acceptability on a case by
case basis.
Unimproved Land
(Includes unimproved parcels and acreage or
recreational land)
1) Loan-to-Value
60% Maximum
2) Balloon Percentage
Variable
Mobile Homes
Commercial Property
(Includes mobile homes/parcel
combinations)
1) Loan-to-Value
65%-70% Max
2) Balloon Percentage
Variable
(Includes motels, apartment complexes, restaurants, operating farms, office buildings,
miscellaneous businesses)
1) Loan-to-Value Variable
2) Balloon Percentage
Variable
3) Qualification Requirements:
Detailed business plan to include operating
Improved Land
(Includes parcels and acreage that have
statements and financial
history, if available.
performance
Sources of Referral
Business
Many professionals are involved in transactions in which a mortgage, trust deed, or real
estate contract is created or maintained. The
following list of professionals should be systematically cultivated as potential sellers or
representatives of sellers of real estate paper.
Obtaining just one referral per quarter from
each of the to following categories will generate almost one closing per week — becoming
a very lucrative part of your business.
■ Mortgage Brokers
■ Trust or Real Estate Attorneys
■ Real Estate Brokers
■ Accountants
■ Financial Planners
■ Home Builders or Developers
■ Private Investors
■ Rehabbers
■ Collection Agents
■ Title Companies
Contract
Checklist
T
The following checklist represents all the elements necessary to facilitate AEI’s purchase of your real estate
contract or trust deed. Please see the forms located in the back of this informational guide.
Contract Purchase Checklist (1st Lien Position)
■ Copy of contract, note & deed of trust, or note & mortgage.
■ Consumer’s Profile Form.
■ Consumer’s financial statement, if available.
■ Quote Form and applicable Property Profile Form.
■ Closing escrow settlement statement.
■ Pay record information.
■ Name, address, telephone and account number of collection account or escrow, if applicable.
■ Signed copy of the enclosed authorization (s) to obtain information for account verification (Authorization Forms).
■ Payoff information on underlying lien(s) including name, address, telephone and account no. of loan to be paid off
(if collected by private party provide lienholder's name, address and telephone no.).
■ A description of the property (i.e., real estate listing agreement) or assessor’s printout.
■ Fire insurance coverage (company name, address, phone no., and if available, policy number).
■ Copy of mobile home title, if applicable.
■ Please indicate where original documents are being held.
■ A copy of your agency or option agreement and the broker worksheet.
■ To speed the transaction, completed applicable Property Profile Forms should accompany your documents.
■ For commercial property furnish a net operating statement (income/expense statement).
■ If available, copy of original title policy.
Broker prepares required Quote Form
sends to AEI
AEI contacts broker with quote
purchase options
Broker receives commitment from
seller. Broker sends note &
completed package to AEI
AEI begins processing —
orders credit report
at AEI’s expense
AEI receives and approves credit report,
orders appraisal, title ins. & payment
history at AEI’s expense.
AEI notifies Broker of approval
to purchase & coordinates
closing date & location
Broker contacts seller to set
location & date for closing
AEI prepares closing package
& sends to Broker or Seller
Purchase Transaction closes!
Purchasing
Procedure
E
Contact
Information
Essential Forms For Closing
Several forms are located in the back pocket of this informational
guide for ease of photocopying, and are provided to assist you in
obtaining an AEI offer to purchase your client’s real estate receivable. Please make copies of the forms provided in the pocket and
use the copies when responding for quote information.
Request for Quote Information
With the quote information form furnished in the back pocket of this
informational guide, AEI can supply an immediate phone, fax,
e-mail quote, or can mail a hard copy of the quote to you direct.
4225 NE St. James Rd.
Monday through Friday
8:30 AM and 5:00 PM Pacific Coast Time
800-889-6786
In Washington • 360-695-6786
Fax • 360-695-9048.
In Portland, Oregon • 503-239-1561
Outside Vancouver/Portland • 800-889-6786
E-mail • [email protected]
American Equities, Inc.
“A tradition of trust since 1979”
Note:This summary information does
not constitute a contract and is provided for informational purposes only.
AEI reserves the right to modify its
business operations and policies disclosed herein at any time without
advance notice. Brokers are not guaranteed that a real estate receivable will
be purchased if they follow the outlined procedures contained herein,
and AEI reserves the right to reject the
purchase of any real estate receivable
for any reason. Copyright 2005
American Equities, Inc. All rights
reserved.
American Equities, Inc.
“A tradition of trust since 1979”
4225 NE St. James Rd.
Monday through Friday
8:30 AM and 5:00 PM Pacific Coast Time
800-889-6786
In Washington • 360-695-6786
Fax • 360-695-9048.
In Portland, Oregon • 503-239-1561
Outside Vancouver/Portland • 800-889-6786
E-mail • [email protected]