June 2014

Welcome.

It is our goal to keep our investors, borrowers, closing agents, and other stakeholders informed and in-touch with the latest developments at TF Management Group LLC.   We aim to accomplish this by providing you updates, education and industry news through this Monthly Newsletter.  We hope you enjoy it and welcome your feedback.

This month features:

  • Recent deal examples
  • A link to view our most recent Webinar: Due Diligence
  • Commonly asked questions

Mike Zlotnik, Managing Director


Recent Deal Examples.

  • Columbus, OH - Real Estate Project
  • Columbus, OH
  • Purchase price $220,000
  • Rehab $45,000
  • After repair value $350,000
  • Loan Amount $150,000
  • Funded May 2014
  • Port St. Lucie, FL - Real Estate Project
  • Port St. Lucie, FL
  • Purchase Price $85,000
  • Rehab $5,000
  • After repair value $115,000
  • Loan Amount $75,000
  • Funded June 2014

Get instant access to our most recent educational material:

Due Diligence Webinar


Commonly Asked Questions:

Q:  I finished the rehab and listed the property at the ARV value, but getting weak showings, and no offers.   How do I quickly improve showings and get offers?

A:  Consider lowering the price to the “Floor”, probably 5-10% below the market, and setup an “Auction like / Open House” event on a weekend, market via MSL, and Brokers, and other ways to bring a lot of potential buyers to look at the house during that 2-4 hour window.  The goal is to get a lot of offers, even low ball, and the lift them up from there.

NOTE: Low Listing price is simply the marketing tool to attract potential buyers.    Think of it as a “floor” not a “ceiling”.

Q:  What’s the difference between investing in individual Trust Deeds loan and a Mortgage Pool fund?

A: The key difference is that Individual Trust Deed Investment is secured by the specific property vs. Mortgage Pool investment is combined together with other investors capital in the pool, and secured by many loans owned by that pool.    Risk is diversified in the Mortgage Pool among all the loans held by it, in essence.Also, individual deal investing typically requires the investor to be semi-active reviewing each opportunity, and making the decision to take it or not.   Fund investing is usually 100% passive.Mortgage Pool fund provides typically lower volatility because of diversification.

Individual deal investing requires deal specific due diligence, e.g. Property, Borrower, Rehab project details, Closing agent vs. the Fund investing requires due diligence on the Fund underwriting, portfolio, managers.