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SELLER
FINANCED
MORTGAGES:
The first category of Mortgage Investment is Seller
Financed Mortgages. These are Mortgages created
upon the sale of the property in which the Buyer
makes a down payment to the Seller and pays the
balance of the purchase price in accordance with
the terms of a Promissory Note secured by a Deed of
Trust against the property sold. Seller Financed
Mortgages are always sold at a discount from the
face amount. Therefore the Investor's yield is
always higher than the interest rate stated in the
Promissory Note. Since yield is calculated based
upon the scheduled payout term of the Promissory
Note, if there is an early payoff, there will be a
higher yield. DIRECT
LOANS:
The second category of Mortgage Investment is
Direct Loans initiated by Cash Now as the lender or
as agent for the lender. Because these are Direct
Loans there is an opportunity for greater
underwriting of the loan and because these are
Direct Loans they are written to require larger
late payment penalties. Therefore, all factors
being equal, a Direct Loan is usually a more secure
investment than a Seller Financed Mortgage with
similar attributes. Both categories
of Mortgages are available in four investor
options. The first three investment options are
subject to a minimum $50,000 first time investment.
Repeat investors may make smaller additional
investments after making the $50,000 first
investment. The four investment options available
are: Whole
Mortgages:
With Whole Mortgages the Investor acquires full
ownership and control of the Mortgage and as a
result has full control and decision making
authority on the Mortgage, but does not have the
additional safety of a subordinated interest. On
Whole Mortgages, the Investor is provided with a
full offering package of information deemed
relevant to an informed investment decision
(Click: Our
Services).
For Mortgages smaller than needed for a $50,000
minimum investment, the first time investor will
acquire a package of Whole Mortgages with an
investment equal to or exceeding $50,000.
This
investment option is best suited to the
experienced, well capitalized Investor who desires
a substantial Mortgage
Portfolio.
Preferred
Partial Interests:
With this investment, the Investor acquires the
preferred right to receive 100% of all payments
until the investment plus the stated yield has been
received. The Seller of the Mortgage retains a
subordinated interest, that remains subordinated to
the return of the Investor's investment plus
interest, even in the event of foreclosure and
re-sale. In cases where Cash Now or its affiliates
are Mortgage sellers, they retain the right to
assume the Payor's obligation on the Mortgage by
bringing it current and making the scheduled
payments until the Investor receives the return of
investment and interest thereon. Although the
retention of a subordinated interest by the Seller
does not guarantee the investment, if there is not
sufficient value remaining upon foreclosure the
Seller would have to lose 100% of its subordinated
interest before the Investor would experience any
loss. Under this program the Investor's Investment
to Value Ratio (ITV) is always 70% or lower for
improved properties and 50% or lower for land
loans. This
type of investment is better suited for the less
experienced Investor with less tolerance for risk
of principal loss. Preferred
Fractional
Interests:
In this form of investment, rather than receiving
100% of all payments, the Investor receives a
stated percentage of all payments until the
Investor has received a return of his investment
and the agreed upon yield. In the event of
foreclosure, the Investor receives a preferred
return just like a Preferred Partial Interest. As
with the Preferred Partial Interests, if the
subordinated interest is retained by Cash Now, or
one of its affiliates, the agreement provides for
the right to assume the Payors obligation and make
the agreed upon payments to the Investor. Under
this program the Investor's Investment to Value
Ratio (ITV) is always 65% or lower for improved
properties and 45% or lower for land loans.
As
with the Preferred Partial Interests this
investment is better suited to the less experienced
Investor with a lower tolerance for
risk.
Securitized
Preferred Fractional
Interests:
NOT
CURRENTLY AVAILABLE ACTUAL
EXAMPLES:
The following are actual examples of Mortgages that
Cash Now has previously sold to Investors. We have
randomly selected five mortgages sold for each year
since 1995:
Year Property
Type Investment ITV Yield 1995 Single
Family $33,000 60.00% 12.03% 1995 Fire
Damaged Single Family 25,188 31.50% 17.38% 1995 Cabin 23,200 58.00% 13.75% 1995 Mobile
Home w/Land 34,
493 57.50% 13.88% 1995 Single
Family 125,488 66.40% 10.75% 1996 Vacant
Land 16,725 66.90% 14.00% 1996 Single
Family 61,486 76.90% 11.00% 1996 Single
Family 38,643 55.20% 14.00% 1996 Condominium 29,553 73.88% 11.00% 1996 Single
Family 75,550 64.60% 11.00% 1997 Mobile
Home w/Land 34.407 74.80% 14.00% 1997 Single
Family 54,900 54.36% 11.67% 1997 Single
Family 29,284 53.00% 11.53% 1997 Mobile
Home w/Land 36,719 64.00% 15.06% 1997 Single
Family 47,666 58.45% 12.63% 1998 Single
Family 33,270 38.68% 9.63% 1998 Mobile
Home w/Land 18,520 35.28% 15.35% 1998 Single
Family 29,637 37.05% 14.39% 1998 Commercial 78,510 65.43% 11.50% 1998 Single
Family 108,285 83.30% 9.78% 1999 Triplex 245,536 77.95% 10.50% 1999 Triplex 103,044 76.33% 13.00% 1999 Road
House/Lodge 149,229 42.64% 11.50% 1999 Single
Family 56,741 59.73% 10.30% 1999 Single
Family 85,279 81.17% 10.50% 2000 Single
Family 33,275 28.50% 10.25% 2000 Single
Family 40,502 72.33% 11.00% 2000 Commercial
- 2nd 68,782 69.25% 18.20% 2000 Mobile
Home w/Land 58,830 68.62% 16.01% 2000 Restaurant
- 2nd 44,556 60.34% 21.18% 2001 Single
Family 53,424 76.43% 13.00% 2001 Single
Family 64,293 38.04% 10.50% 2001 Improved
Lots - 9 Mortgages 127,488 43.49% 13.00% 2001 Vacant
Lots - 28 Mortgages 465,162 64.00% 16.00% 2001 2 Old
Homes on One Lot 47,413 39.50% 14.50% 2002 Mobile
Home w/Land 70,008 83.80% 13.00% 2002 Bar w/2
Apts 111,048 37.40% 12.00% 2002 Mobile
Home Court 121,672 34.20% 12.00% 2002 Single
Family 34,666 43.30% 9.50% 2002 Old
Single Family 23,382 31.50% 10.00% 2003 21
Recreational Lots $60,000 18.15% 12.00% 2003 Mobile
Home w/Land $62,500 50.00% 11.00% 2003 Land for
Subdivision $157,500 18.53% 14.55% 2003 Single
Family $50,000 32.30% 13.00% 2003 Single
Family w/Acreage $75,952 52.40% 10.00% 2004 Mobile
Home w/Land $106,646 64.63% 14.08% 2004 Cabin
w/Acreage $98,000 49.00% 16.00% 2004 Mobile
Home w/Land $66,500 60.45% 14.02% 2004 Single
Family $84,000 56.00% 10.50% 2004 Single
Family $160,000 72.73% 13.51% 2005 Mobile
Home w/Apts. $108,030 67.52% 12.73% 2005 Single
Family $115,168 71.98% 12.55% 2005 Vacant
Lot $42,572 60.82% 15.00% 2005 Mobile
Home w/Land $66,634 74.04% 12.86% 2005 Single
Family w/Acreage $49,376 46.23% 11.90% |
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