Residential Mortgage Backed Securities

 
* This investment opportunity is limited to our clients, contacts and specific referrals.  Thank you.

BACKGROUND SUMMARY: WHY THE INVESTMENT OPPORTUNITY?

Many of our clients have contacted us in recent months looking for ways to capitalize on the decline of the real estate market.  We have put a great deal of energy into networking and researching all facets of the market including bank owned properties, bulk real estate purchases, foreclosure auctions, trading mortgage notes, etc.  While we have made progress in these areas, our efforts have lead us down the path of Residential Mortgage Backed Securities (RMBS). Many opportunities we've come across seem solid in theory but our focus for opportunity goes beyond theory.  Our search was fueled by solid theory, practical application, proven returns and a sound track record...in other words we wanted an investment that would help minimize risk in a volatile market.  As an extension of our business and evolving with the needs of our clients, Team Priority has partnered with a group whose sole focus and experience lies in analyzing and acquiring RMBS investments.

Together, the national credit crisis and the declining real estate market have created a new opportunity for high yield, low risk investment opportunity.  You see it every day on the news...banks are being forced to mark down and sell their most valuable assets to stay in business and increase liquidity.  Positioning ourselves to pick up real estate backed assets at .20 or .30 cents on the dollar, for example, is proving to be quite lucrative. We see this as an opportunity to take advantage of the financial upside of real estate investing while eliminating the cost and inconveniences associated with property management, property rehabs, carrying cost of mortgages, property tax, insurance, etc.  The investment model also provides for a quick return on principal which is not common in traditional real estate investing. Moreover the true benefit lies in the ability to make money on real estate while in a depressed real estate market.   

This is not an abstract investment.  Buying and selling RMBS is, and has been a fundamental part of the market for years.  Whether heeding the advice of PIMCO, Lehman Brothers or any other reputable financial source for that matter, there is undeniable support for the profitability of the RMBS market today. The only difference between the present and the past is timing and accelerated opportunity.  The same reason the average American cringes when they here the word "mortgage" is the same reason RMBS are providing a new, profitable window for investors.      

RESIDENTIAL MORTGAGE BACKED SECURITIES (RMBS) - The Investment Fund

* The distressed mortgage market has created great RMBS opportunity. RMBS are essentially a number of individual mortgages grouped together and sold as securities or bonds in large blocks.  These blocks vary in size, quality and price. 

* RMBS (all classes, even "A+" quality performing mortgages) are being forced to sell at huge discounts due primarily to lack of liquidity in the market and margin calls.

* The nature of RMBS is extremely low risk when purchased at such discounts...they are collateralized by real estate and our model includes numerous credit enhancements (safety nets) to lower risk and increase yield.

* Our analysts "Stress" RMBS daily with 3 of the top industry bond stress models. They stress the bonds to determine their exact "breaking point". (Ex: our last bond would not break unless 80% of the borrowers stopped paying their mortgage payments...not only is this highly unlikely but the owner of the RMBS still has rights to the properties collateralized by the mortgages. This makes principal loss nearly impossible.)  The underlying asset that protects the investment is real estate.  Even after foreclosure, the recovery on the sale price is forwarded to the bond holder.

* Our analysts have extensive experience, securitizing more than 150 billion for major lenders with $0 principal write-down.  We focus primarily on performing mortgages for owner occupied single family residences with loan to values of 80% or less at origination.  They are all institutional quality, seasoned bonds.

* The existing funds are operating with projected returns of 25-44%.  Meanwhile, the funds are paying 8% annual preferred return (payable monthly) in addition to ongoing principal reductions.  The aggregate principal return for all funds under management already exceeds 50% in less than one year.

* Projected life span of investment is 36 months with principal reductions expected throughout the duration. Although the projected life span is 36 months, our current funds are on pace to close with full pay out + profit within 18 - 24 months.