Vincent Pitts of Pitts Enterprise Inc.

1. Private Mortgage
Investments
High Yield
Investments Secured
by Real Estate
9/5/2012

2. Private Mortgage
Investments
Vincent Pitts
President
Pitts Enterprises Inc.
9/5/2012

3. Disclaimer
Please carefully consider Pitts Enterprises Inc.
investment objectives, risks, and associated
costs or expenses before investing. Real estate
investments are not guaranteed or insured and
past performance is not a guarantee of future
performance. Please ask questions and ask for
more information before you consider any
investment.
9/5/2012

4. WELCOME
 We are glad you could attend this presentation
 I really want you to understand what we have to
offer.
 I encourage questions
 I’ll stick around after the presentation to answer
individual questions or we can schedule a one-on-
one meeting at a later date.
9/5/2012

5. Agenda
 Private Investor Program
 1st Mortgage Program
 2nd Mortgage Program
 Company Overview
 History
 Dream team
 Questions
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6. “More millionaires have
created their wealth
through real estate than
any other endeavor”
Andrew Carnegie
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7. How does your bank
make money today?
 They take in money on CD’s and other securities
offering relatively low returns
 Current CD rates are about 4.3% for 1 year and
about 5.0% for 5 year
 They then loan the money out at a higher rate of
interest to other people to buy houses in the form
of mortgages
 Typical mortgage rates are 6.0% to 9.0%
depending on the borrowers credit history
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8. Private Investor Program
Overview
 We buy & sell Single Family Residential Properties
And Multi Unit Buildings.
 To typically buy houses, we prefer to borrow
money from private individuals versus banks
 We pay private investors 9% for 1st mortgage
money or 12% for 2nd mortgage money
 We typically use your money for 5 years but we can
offer shorter terms in some cases
 It is really a very simple plan
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9. Private Investor Program
How it works
 We locate a property we want to buy
 We negotiate a price that is typically 30% to 48%
below market
 At closing we borrow from you the private investor
to purchase the property
 We have a formal closing and you get a mortgage
and insurance on the home as security
 We make payments to you on the scheduled dates
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10. Private Investor Program
Guidelines - 1st Mortgage Program
1st Mortgage Program
1. $25,000 minimum
2. Up to 75% LTV
3. 9% Interest
4. Numerous payment options (monthly,
quarterly, etc.)
5. One Point (1%) upfront fee to you the investor
6. 5 years (we allow early withdrawal without any
penalties)
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11. Private Investor Program
Payments Options
 You get 9% simple interest on your invested capital
(12% if you choose the 2nd Mortgage Program)
 We can pay you any of the following ways:
 Monthly (9.0% APR)
 Quarterly (9.1% APR)
 Semi-annually (9.2% APR)
 Annual (9.4% APR)
 No Payment Accrual Program (11.3% APR)
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12. $100,000 Investment Example
One Year
Yield 12 Month Return
3.7% $3,700
9.0% $9,000
This is a 240% increase in
return to you the Private
Investor
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13. $100,000 Investment Example
Five Year
Yield 60 Month Return
3.7% (monthly) $18,500
9.0% (accruals for 5 years) $56,568
This is a 310% increase in return to
you the Private Investor
9/5/2012

14. Our Target Property
 Average Purchase Price $15,000 - $50,000
 Chicgoland Cook County
 Repair Cost $8,000 – $25,000
 Typically 3 to 5 bedrooms and 1.5 baths
 Time to renovate less that 90 days
 House will sell between $30,000.00 and $150,000.00
 Typical Loan is $40,000 or $750 per month
 Our profit is the spread between the rent and your
interest
Rent payment pays the 9% interest.
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15. Questions ???
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16. What if the Tenant doesn’t Pay?
 We pay you out of our pocket. I will never default
on a loan.
 We will collect from our tenants though careful
negotiations or the courts, if needed.
 For our tenant/buyers we require a 3% to 10% non-
refundable deposit upfront which dramatically
reduces non-payment issues.
 For monthly rentals we require at least two months
security to protect both you and us.
9/5/2012

17. Three Documents Securing
Your Investment
 Promissory Note signed at time of
investment by Pitts Enterprises Inc.
 Recorded first or second mortgage
 Certificate of insurance naming you as
additional insured
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18. Your BIGGEST Concern
Protection of Principle
 1st Mortgage Program – we never borrow more 75%
Loan-to-Value
 We typically buy 30% to 48% below market
 We then build in equity by rehabbing the property
($25,000 to $35,000)
 We find quality buyers who give us a $5,000.00 up
front deposits
 We guarantee your payments
9/5/2012

19. Got IRA Money???
 We can do IRA & Roth investments
 Our Third Party Administrator is
Equity Trust Company
 Located in Elyria, Ohio
 Allow self directed investments in real estate
from both an IRA or ROTH account
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20. People Who Sell us Houses
 Foreclosures (40%)
 Banks
 HUD
 VA
 Freddie
 Fannie
 Private Individuals (35%) – Increasing Quickly
 Realtors (25%)
9/5/2012

21. People Who Rent
then Buy our Houses
 We have Tenant/Buyers
 Many will become first-time home buyers
 They work with our mortgage brokers to eventually
purchase our homes in 12 o 24 months
 Our goal is to get people off of the rent rolls and
into a home of their own
9/5/2012

22. SEC Registration Issues
 These secured mortgage notes are exempt
transactions pursuant to Section 203 (d) of the
Pennsylvania code
 No registration is require as long as we stay
below 25 investors and only deal with Pennsylvania
residents
9/5/2012

23. Pitts Enterprises Inc.
 We are a C-Corporation
 We or many members:
 We hold properties both short and long term
 10 years of experience
 Manage Rentals
 Currently own Six properties with about
$100K in asset value
9/5/2012

24. Pitts Enterprises Inc.
Who Is Vincent Pitts?
 58 Years Old.
 One Adult Son.
 30 Years as Management Consultant Pitts
Enterprises Inc .
 25 Years Real Estate Investor.
 20 Mortgage Consultant Blake Consultants.
 10 Years Project Manager .
 20 Years general Contractor.
9/5/2012

25. Company Story
 We started in 1985 with the purchase of a mixed use
building in Chicago Il,. Since that first purchase,
we have become a serious real estate investment
firm located in the Chicagoland/Cook County
region
 We have grown to hold over 6 properties worth over
$100 ,000.00 thousand dollars.
 Our goal is to grow this company to buy and sell
100 properties by providing affordable housing to
buyers and provide 1st time homeowners a
mortgage they can afford.
9/5/2012

26. Company Story, continued
 The company is a private for-profit Real
Estate Investing Company
 We acquire, rehab, and lease or sell
residential and, at times, commercial real
estate
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27. Competitive Advantage
 Our competitive advantage is speed to purchase a
property and knowledge of creative real estate
techniques
 That speed comes from knowing we have private
funds and the ability to pay cash and close quickly
 We are very focused in a small geographic area and
know the values in our market much better than
the sellers and, in most, cases than our
competition
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28. How to find us
 Mailing Address: 18221 Torrence Ave Suite
2-C Lansing Illinois 60438
 Web Site:
www.blakepittshousingsolution.com
 www.pittsenterprise.wordpress.com
 E-Mail: e.pitts@comcast.net
 Cell Phone: 1-708-557-9667
9/5/2012

29. The Next Step ?
 By now you know how this program
works and how you can earn 9% or 12%
starting today
 Sign up today for a private meeting
 We just want a chance to answer any
questions you might have
9/5/2012