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 Website – www.bwdcapital.com • Tenant Website - www.bwdcapitalllc.managebuilding.com
2018 Investor Presentation
What We Do BWD Capital conducts intense, target-market analysis designed to find motivated sellers and discounted properties. We acquire real estate for rentals and flips, sell wholesale contracts, and finance mortgages. We identify owners who want to sell property and pair them with buyers and investors who finance deals.
What We Do Unlike bankers and real estate agents, In business since 2016 we have our main customers are real estate completed a wide array of deals investors. That means we spend our ranging from rentals, flips, contract time solving problems for investors sales and holding mortgages. who want to make more money.
Active Real Estate Investing There are many types of real estate investing strategies. Here are examples of deals we have done : 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.
Active Real Estate Investing House Flipping - An investor buys property with the intention of repairing it and selling it on the market at a higher price to make a profit.
Low Money Down Real Estate Investing 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 property. Wholesaler receives a fee from the buyer for selling the contract.
Passive Real Estate Investing Holding Mortgages - a.k.a. ‘Holding Holding a mortgage is an example of Notes.’ Mortgage -holders are lenders a passive real estate investment. who agree to finance purchase (or refi) There is no land-lording, no collecting money for real property. In return, rent, no evictions and no fixing broken borrowers agree to pay the lenders a toilets. monthly interest fee.
Advantages to “Holding Notes” ‘Holding a note’ as a passive investor is an excellent way to take advantage of a thriving rental market without all of the headaches that come along with being a landlord. Mortgage holders can demand a high interest rate depending on their target markets. Many real estate investors (landlords) have either maxed out their ability to get loans from banks or choose to pay a private lender for quick access to cash.
The Problems With Savings Accounts The average savings account pays .06% interest. Certificates of Deposits (CDs) pay an average of 1% returns on an annual basis. Inflation ensures that your money loses about 2% of its value each year. Savings Accounts, CDs and Money Market Accounts can not match he rate of inflation. Financial Management Companies promise big returns for big risks and charge 1%-3% in management fees.
Why Real Estate? Low Risk – Real Property values in Low Barrier to Entry – With BC have remained stable through the depressed economic even the worst crises of the last 15 market, an investor with cash- years. Many deals produce instant in-hand can find great deals. equity because they are bought at deep discounts. 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%!
Case Study – Holding a Note 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 $5,000.00 $4,886.99 Purchase Price $15,000 $4,000.00 Loan Amount $12,500 $3,000.00 Cumulative Cumulative Interest $4,887 Interest Principal Payoff $11,884 $2,000.00 Mort Expenses $0 $1,000.00 Cumulative ROI 39.10% $616.21 Principal $0.00
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