Deposit Profit Maximixer Lending Program (OVERVIEW) - 2.1

CapitalEMD.com | Deposit Profit Maximizer Loan Program Overview and FAQ | Ver 2.
1
IMPORTANT: CapitalEMD.com will not provide funding for any transactions where it suspects fraud or misrepresentation of any kind against CapitalEMD.com,
affiliates, subsidiaries, the buyer the buyers lender, the seller, or the seller's lender.

CAPITALEMD.COMS
DEPOSIT PROFIT MAXIMIZER LENDING PROGRAM
(FOR WHOLESALERS AND REHABBERS)

CEMDs Deposit Profit Maximizer Lending Program offered to select, well-qualified, knowledgeable
investors. The purpose of this program is to help revitalize neighborhoods and communities in California
while providing Earnest Money Deposits for investors. Qualified investors have the opportunity to
rebuild or expand their business by working with CEMD in a unique program that allows you to
wholesale with NO capital.
Basic Lending Guidelines:
- California Only
- To reach Preferred status, Investor successfully completed at least 24 wholesale deals within
the past 24 months (provide with application: Assignment contracts, previous HUDs, and
Description of the deal.
- Funding provided to business entities ONLY (LLC, Corporation, LP)
- Local market knowledge required
- Use of experienced and insured title/escrow company.
- No judgments, liens or lawsuits against company applying for funding. No criminal record for
individuals.
- Max funding of $40,000, in aggregate, to one borrower. Multiple properties allowed, but
approved on a case-by-case basis
- Acceptable Property Types: Single Family Homes, Townhomes, Condominiums and Multi Units
approved on a case-by-case basis.
- Limited to straight assignments (Important: Other closing methods will be approved on case-
by-case basis)
- Inspection required
- Max LTV from proposed ARV is 75%

[CONTI NUED ON NEXT PAGE FOR PROGRAM TERMS]

CapitalEMD.com | Deposit Profit Maximizer Loan Program Overview and FAQ | Ver 2.1

PROGRAM TERMS

REWARDED FOR
QUICKER CLOSING!


Frequently Asked Questions
(FAQ)

Q: What sets CEMD apart from other private funders?
A: There are three key differences between the CEMD program and what is most commonly offered by
private funders:
1. CEMD makes a preferred equity investment by buying the equitable interest in your purchase
contract as opposed to a loan. As such, CEMD does not require a personal guarantee (other than
for fraud and misrepresentation), nor do we base our decisions on personal credit scores.
2. Along with our private investors, CEMD provides 100% Earnest Money Deposit financing for the
wholesaling the property to an end-buyer.
3. We are also investors/developers. Meaning we can help analyze a deal much quicker than most
typical hard money and/or private lenders.
Q: How does CEMD make money? What percentage of the profit is allocated to CEMD?
A: As a provider of preferred equity, CEMD is entitled to a preferred return on the capital invested in
each transaction. To achieve our targeted IRR for this investment strategy, we receive a 24% preferred
rate of return, along with a split of the profits based upon a number of factors, including experience,
amount of cash contributed by the Client, length of holding period (i.e., how long our capital is
outstanding), and size of transaction. Each deal is priced on a case-by-case basis.
Q: I n addition to the profit allocation, are there any other costs associated with each
transaction?
A: Since we fund transactions based upon the merits of each deal, it is
imperative that we perform the necessary due diligence on each transaction
(e.g., valuation, market analysis, title history, etc.). To cover the costs
associated with this due diligence, the Initial Client pays $400 to CEMD,
which is used to pay for background, credit check, criminal history, entity
search, and etc. At the time of closing initial funds will be credited to
wholesaler.


Q: Does CEMD perform a credit check?
A: Yes, we do run credit checks; however, credit score is not a factor in our decision process.
Additionally, as part of our standard due diligence, we will run a full background check - including
criminal - on each principal of the company. CEMD is not a lender and, therefore, does not qualify the
transaction based upon the Client's ability to repay the invested capital.
Q: What information does CEMD require in order to begin underwriting a new transaction?
A: In order for us to begin the underwriting process, we must have all of the following information:
1. CEMD Application Form (found on the Submit Application page)
2. Wholesale EMD Funding Transaction Worksheet (found on the Submit Application page)
3. Copy of Drivers License
4. Articles of Incorporation/Organization
5. Bylaws/Operating Agreement
6. Evidence that Corporation is in Good Standing (as of transaction date)
7. Resumes of all Principals and/or Authorized Signers
8. Brief Narrative Describing Business Plan
9. Fully Executed Purchase Contract (with all Addendums if applicable)
10. Copy of Ratified Purchase Contract
11. Escrow and Title Information (we will only contact them to verify wiring information and to
invoice of fee).
12. Comparative Market Analysis (CMA) with at least three (3) recent comparable sales
13. Interior and exterior photos of subject property
14. Last three months' bank statements for business
15. Contact info for realtor (if listed: we will only contact them to verify wiring information).
16. CEMD Due Diligence Fee
17. Other documents as needed
Q: How long does CEMD take to underwrite, approve and fund a transaction?
A: Typically, our underwriting process can be completed within 3-5 business days from the time we
receive all of the information listed above. Please keep this timing in mind when structuring your
transactions, as we will very rarely make exceptions to this policy.


Q: How does CEMD protect its investment?
A: As noted above, we are providing equity, not debt. Accordingly, all of our invested capital is at risk
without recourse back to our Clients (except for instances where fraud and/or misrepresentation has
occurred). However, lack of personal guarantee and promissory note notwithstanding, we are able to
mitigate risk and protect our investment through: (i) extensive transaction-level due diligence; (ii)
execution of a Assignment Contract between CEMD, as Grantee, and our Client, as Grantor, which is
held by CEMD; (iii) Notarized Memorandum of Understanding, (iv) escrow/title insurance policy and
closing protection letter provided by escrow /title insurance company; and (v) working only with trusted
third party providers (e.g., title/escrow companies, buyers, mortgage lenders, appraisers, etc.).
Q: How do I get started with CEMD?
A: To be added to our "prospect" database, which we encourage you to do prior to having a deal to
submit, please complete the Investor Information Package and return, via email, to
application@capitalemd.com. This will help in expediting the process once you have a transaction in need
of funding. Please note, we don't "pre-approve" Clients, as our decision to invest is based primarily on the
transaction. However, if you have any liens, judgments, or pending lawsuits against you or the company,
we may need additional documentation prior to approving you. We will not approve any applications
where the applicant has been convicted of any crimes of moral turpitude.

CLICK HERE TO GET THE APPLICATION:
www.capitalemd.com/application


SAMPLE TRANSACTION

When you do a deal with NONE OF YOUR
MONEY This is INFINITE RETRUNS!


CONTACT INFO

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