1. Build Wealth Today
With Double Digit Returns,
No Commissions & Predictable Results

2. Investment Marketplace

3. What Are Your Investment Objectives?
• Security
– CDs
– Corporate Bonds
– Government Bonds
– Fixed Annuities
• Higher returns
– Stocks
– Mutual Funds
– Variable Annuities

4. Bank Of America: CD Rates:

5. Annuity Rates:

6. Bond Rates:

7. S&P 500: Last 5 Years:

8. S&P 500: Last 10 Years:

9. Precious Metals April 2011 – April 2013

10. 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

11. $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)

12. 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

13. “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

14. Variable Annuities
• Act Very Similar A Mutual Fund
– BUT
•
•
•
•
•
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

15. 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.

16. Company Overview
FOM Holdings and
Investments LLC.
A real estate investment firm
created to purchase, manage and
sell single, multi-family and
commercial dwellings primarily in
the Phoenix Arizona.

17. One and Only Goal
To Significantly Increase The
Wealth Of Our Private Investors With
Double-digit Returns Plus
Upside Bonus Potential .

18. How We Acquire Properties
• Private Individuals.
• Realtors.
• Pre-Foreclosures.
• Foreclosures & REOs.

19. Fall 2013 Current Project
•
•
•
•
•
•
•
4208 Sierra Vista,
Historic Phoenix
Paid = $58,000
Rehab = $32,000
Total = $90,000
Listed = $145,900
Projected Profit = $44,428

20. November 2012 Project
•
•
•
•
•
•
•
2721 W Villa Maria
North Phoenix
Paid = $54,500
Rehab = $22,000
Total = $76,500
Sold=
$114,000
Profit = $31,160

21. August 2012 Project
•
•
•
•
•
•
•
10426 w Georgia
Glendale AZ
Paid = $89,900
Rehab = $6,000
Total = $95,900
Sold=
$129,900
Profit = $26,206 in 35 days

22. February 2012 Projects
•
•
•
•
•
•
•
1942 N 104th Ave
Avondale
Paid = $62,300
Rehab = $8,860
Total = $71,160
Sold=
$92,000
Profit = $15,320

23. June 2011 Project
•
•
•
•
•
•
•
8421 W Payson Rd
Tolleson AZ
Paid = $74,100
Rehab = $0
Total = $74,100
Sold=
$110,000
Profit = $35,900

24. November 2011 Project
•
•
•
•
•
•
•
21844 W Pima St
Buckeye
Paid = $79,500
Rehab = $3,350
Total = $82,850
Sold=
$104,000
Profit = $16,850

25. March 2012 Project
•
•
•
•
•
•
•
10217 W FLORENCE
Tolleson AZ
Paid = $70,000
Rehab = $4,650
Total = $74,650
Sold=
$103,000
Profit = $22,170

26. Current 2014, Opportunities
4712 W Lindner, $20,000

27. Current 2014, Opportunities
5538 E Dionysus Dr, $32,600

28. Invest in Sunny Phoenix Arizona
• The Phoenix Metro area is made up of 1
major county, Maricopa County and is the
6th largest consumer market in the U.S.

29. 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.

30. Security
Mortgage
Note

31. Private Lender
Program Overview
• We buy houses.
• We borrow money from
private lenders to fund our
deals.
• We pay 12% 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
greater purchasing power

32. $50,000 Investment Example
Type
Yield
12-Month
Return
Bank CD
1.5%
$750
RE Investor
12.00%
$6,000
Annual
Increase
$5,250
In 5 years, your investment could grow to $75,000!

33. Investment Documents
• Promissory Note for loan
amount.
• Recorded Mortgage at
reasonable 70% 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.

34. Current Investment Opportunity
4712 W. Lindner

Appraisal Value: $185,000

Loan/Investment: $141,000

Purchase Price: $128,000

Renovation Cost: $11,000

Resale Price: $178,000

Gross Profit: $37,000 minus closing costs

Net Profit: $24,540

Interest to Private Lender: $5,640

20% of the profits =$4,908

Return of Investment: 22.55%
Investor: 22.5% Return on
Investment;
Principal and Interest
returned to Investor in 4
months

35. Investor Benefits
• Investor income:
– $135,500 (loan) x 22.5% = $30,555 annually.
– Monthly interest = $2,546.
• 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.

36. BEFORE
AFTER

37. *Bonus*
• FOM Holdings and Investments LLC Private Lenders receive
12% fixed interest ~OR~ 20% of the net profits on the resale
whichever is greater.

38. 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

39. R.O.I. OFFER
•
•
•
•
12% interest
~OR~
20% of the profit
Whichever is greater (If/when they fund an
entire deal).

40. FOM Holdings and Investments LLC
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.
•
•
•
•
•
•
•
•
•
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.

41. FOM Holdings and Investments LLC
Works Hard So You Can Relax
• Create ads and signs for
advertising available properties.
• Put out lock boxes and signs.
• Obtain constant training through
Phoenix Assoc. of Realtors and
National Real Estate Investing
Association and local AZREIA.
• Manage database.
•
•
•
•
•
•
•
•
•
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.

42. 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.

43. 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!

44. Early CD Withdrawal
• A bank’s average penalty on a $50,000 CD is
$750 (6 months interest @ 3%).
• FOM Holdings and Investments LLC may pay your
withdrawal penalty.

45. IRA Eligible
• Individual Retirement Accounts qualify, including Roth
IRAs.
• Allows you to self-direct your investments in real estate.
• 3rd Party Administrators.
– Vantage Trust
(Phoenix, Arizona)

46. 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

47. Investment Alternatives
• Transition to a secured investment.
• Collateral-based.
• Fixed returns.
• Better protection of
principal.

48. 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.

49. 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

50. 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.
Predictable Retirement Investing Made Easy

51. Scenario #1:
“Short Term Double-Digit Interest”
1. Our company locates distressed properties.
2. Our company purchases the property
significantly below market 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.

52. 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.

53. 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.

54. Program Guidelines
• Each loan is secured by a note.
• A mortgage is recorded in
public record to secure the
note.
• We typically require $60,000 $150,000 for quick-turn loans.

55. 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.

56. 70% Loan-To-Value (ARV) Rule
We Don’t Break This Rule!
100%
appraised
value
70% loan to
value

57. In the Event Something Happens
to a Key Owner
• FOM Holdings and Investments LLC 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.
• Andrew has named private lenders as beneficiary on his life
insurance policy for the amount of the mortgage.

58. Give Yourself the Gift of Time

59. 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.

60. 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

61. FOM Holdings and Investments LLC
Private Investing
602-282-0221
andrew@fomholdings.com
www.fomholdings.com
Investing Solutions