Monetizing Notes 1 st Lien Residential Non-performing Discounted Mortgage Notes

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1 Monetizing Notes 1 st Lien Residential Non-performing Discounted Mortgage Notes The presentation will begin promptly at 11:00 SPT Presented By Jeff Merrick Sponsored By Alan Pollack & James Mencini

2 GLS is committed to being a solution to our nations housing crisis. We create solution by acquiring major banks distressed assets in bulk and then immediately selling to private regionalized note investors or non-profit organizations. We also accommodate larger investment groups with structured sales of unworked assets so they too can become a part of the solution by offering the homeowners various workout opportunities. We believe that together we can work towards the stabilization of our countries economic challenges by creating profits, jobs, and ultimately a stable real estate marketplace.

3 Todays Topics How do NPNs (non-performing notes) differ from REO opportunities Why would an investor want NPNs Advanced exit strategies What product is available and the prospect for future product How does one get the product?

4 How do NPNs (non-performing notes) differ from REO opportunities? The amount of available assets are abundant The competition is limited The purchase price points are lower Notes offer more exit strategies the REOs Greater margin for error which mitigates loss potential Distressed Notes Are The Mainstream In Todays R.E. Marketplace

5 Why would an investor want to purchase NPNs? 1 st TD non-performing notes can be bought at deep discounts Example: GLS sells NPNs from 10%, to 50% of todays as-is home value With notes you can create cash flow or capital growth When you acquire a note you become the bank and have all rights to foreclose, modify, sell at trustee sale, amongst executing many additional exit strategies There are many sub-servicing groups/specialty servicers that can support you by handling all of the day to day loss mitigation activities for you such as collections, FCs, loan modifications, and note sales There are many vendors that support the distressed note business such as National REO liquidation, and National property protection and enhancement All of which allows you to scale your investment platform and create great profits

6 Advanced exit strategies Capital Growth or Cash Flow Capital Growth Strategies Vacant NPNs Deed in Lieu and then sell (flip) Short sale with cooperation from owner Foreclose then lease up then sell in the open market Note sale Occupied NPNs Family sale / Borrower remains in property Short sale / Cash for keys and then sell Deed in Lieu or Cash for keys and then Sell Modify / Re-trade as re-performing note Modify / Refinance onto HUD loan borrower must income qualify for loan 500 min. FICO Note sale

7 Advanced exit strategies Capital Growth or Cash Flow Cash Flow Strategies Vacant NPNs Deed in Lieu and rent for income stream Foreclose with the intent to rent for an income stream Foreclose or Deed in Lieu and then sell under a land contract or carry back traditional loan Modify loan and move family back into property Occupied NPNs Reinstatement Full or Partial hold as re-perform for cash flow Restructure Note/Modify for high yielding cash flow Deed in Lieu or Foreclose then Leaseback Deed in Lieu or Foreclose then create paper with Note or Land Contract

8 What product is available and the prospect for future product? Typically note buyers acquire notes from Hedge Funds, Private Equity Groups, Regional Banks, Servicers and other Secondary Sellers The challenge with these sources is that the loans have been overworked by the owners loss mitigation teams and they only turn to secondary buyers to sell their tails at high price points which leaves little room for profitability to the new note owner Some groups do have the necessary contacts, infrastructure, track record, exit strategies, and balance sheet to gain access to the major banks Most groups cannot and should not acquire entire portfolios due to the fact that you cannot cherry pick whatsoever and typically have to buy in 35 states or more and have the sophistication to successfully execute strategies on all loans acquired Based on conversations with actual bank traders there is literally trillions worth of bad debt to be traded and they forecast heavy trade activity for the next 4-5 years

9 How does one get the product? GLS is a direct seller of unworked NPNs We have all files and assignments in hand and ready to ship GLS typically has loans available at all times V.O.T.T. due diligence is provided on all loans which saves our buyers the up-front cost of approximately $300 per asset One off (cherry picking) and bulk trades accommodated All loans sold at wholesale pricing GLS currently purchases loans per month so our customers have a constant supply to choose from GETTING STARTED Complete the GLS vetting package will be delivered after this presentation concludes Once approved you can start ordering custom tapes and looking at loans to purchase

10 Monetizing Notes 1 st Lien Residential Non-performing Discounted Mortgage Notes Thank you for joining us For more information please visit our web site at