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S OU T HERN T RUS T MOR TGAGE J O I N T V E N T U R E B LU E P R I N T
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table of contents 3
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Benefits of a Joint Venture 5
Why Joint Ventures
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Benefits for Real Estate Companies
Why Choose Southern Trust 11
Advantages of Using Southern Trust
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Mission & Vision
Create Your Custom Plan 17
Options for Real Estate Companies
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Benefits Joint Venture 3
of A With a Joint Venture, the Lender and Real Estate Agency are forming an independent mortgage company to serve the needs of the agency’s clients and other borrowers. As a separate legal entity with its own management and clear sharing of risk and reward, a joint venture carries far less regulatory risk than “marketing agreements” and there is much less work required. There are multiple types of Joint Ventures which can be tailored to meet the needs of the partners.
In a JV, the relationship between all parties is fully-disclosed, economic risks and rewards are shared, and there is much less regulatory risk than “marketing agreements”.
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Why Joint Ven If you are doing $300M or more in annual transactions, we should talk about a Joint Venture. At Southern Trust Mortgage, we’re looking for like-minded, high integrity, real estate partners who want:
One stop convenience and OUTSTANDING customer care
Differentiated Product offerings at GREAT values
EXCEPTIONAL cash flow and ROI with far less regulatory risk
Industry experts with a TURN-KEY solution.
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ntures? Key Benefits of Joint Ventures
Unlimited Earning Potential
Eliminates tedious detailing of monthly marketing activities
Set up as a completely separate legal entity
Fully disclosed to the customer for transparency
Consumer pricing is more competitive
Leverages the real estate company’s brand and service
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Benefits of Joint ventures For Real Estate Companies MSA’s require monthly maintenance and the landscape of valuations is constantly changing. A Joint Venture with Southern Trust is less work and safer from a regulatory perspective.
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M O R E J O I N T V E N T U R E A D VA N TA G E S
Considerably less regulatory risk than a Marketing Service Agreement
Elimination of time/expense engaged in documenting marketing activities
Model creates opportunity for greater consumer savings
One stop shop – added convenience to the customer
Greater earnings ability
Business relationship is fully disclosed to the consumer
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Why choo Southern Trust? 9
ose n
Southern Trust Mortgage is an industry leading lender that serves our partners, borrowers and team members through an exceptional lending experience, thriving relationships and unwavering integrity. We foster a product and culture that is founded on confidence and trust.
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Advantages of usin 1.
Established Purchase Money Lender
More than 85% of our loans are for the purchase of a home. We make our living satisfying the unique needs to home buyers and their agents.
2. Unrivaled Service We believe in consistently making mortgages simple and easy. Our company has been structured to offer programs and services that accomplish that goal.
Growing company with 3. avalues of a Small business We have all of the resources you’ll find at a big company, but we treat our customers the way you’d expect from a family owned business.
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ng Southern Trust 4. staying ahead of emerging tech We believe in engaging with our customers in ways they’ve come to expect in the modern world. With an in-house team, we are focused on developing new ways of effectively interacting with our borrowers and partners.
5. Marketing that opens doors Our industry leading marketing resources can help ensure that our Joint Venture is well-branded and positioned for success in your specific market.
Track Record 6. Proven of performance Southern Trust has experiencing functioning profitably in all types of real estate and economic environments.
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our mission To provide superior mortgage services through a unique business channel by delivering a seamless, transparent, and economical experience to our customers and reinforcing our business partner’s brand and reputation while reducing exposure to regulatory risk.
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our Vision Operating a highly reputable and profitable business which grows our business partner’s brand by providing mortgage solutions to serve their customer base with exceptional service and integrity.
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Let’s Create Yo custom p
When you’re ready to mov a Joint Venture with us sim work with our Joint Ventur
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ve forward, we’ve made the next step in starting mple and straightforward. Choose the right structure then re team to create the perfect partnership for your business.
our plan
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Joint Venture Options for Real Estate Companies We’ve got options for you to choose from based on how you’d like to structure our venture together. Once you’re ready to begin on you selected path (Intermediary, Correspondent or Hybrid), our Joint Venture team gets started very quickly. We’ll begin putting together your custom plan within 48 hours and open for originations in 8-10 weeks.
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JOINT VENTURE OPTIONS Breakdown INTERMEDIARY
CORRESPONDENT
HYBRID
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Unlimited unless investors will not accept third party originations
Based on investors, unlimited menu
Based on investors, unlimited menu
Profit split
51% to STM, 49% to Partner
51% to STM, 49% to Partner
51% to STM, 49% to Partner
Functions
Independent company brokering to wholesale investors
Direct lender
Direct lender on government loans, brokers conventional products to wholesaler
Operations support (processing, underwriting, closing)
Provided by wholesale investor
Performed by joint venture
Performed by joint venture
SCC
Investors & Federal regulators
Investors & Federal Regulators
Must show service release premium and profit to JV
Does not need to show profit
Does not need to show profit
Wholesale entity
JV
Depending on product, some in name of JV and some in name of wholesaler
Capitalization Requirement
$250,000
$2,500,000
$1,250,000
Partner's share of capital contribution
$122,500
$1,225,000
$612,500
Minimum Employee Requirement
Loan products
Regulators
Customer disclosure
Loan closes in name of
Example of an Actual Model
* Assuemes buy-side transactions are 50% of annual sales and a 30% capture rate ** Estimates; capital requirements will vary by state and circumstances
JV LOAN VOLUME*
YOUR CAPITAL CONTRIBUTION**
YOUR ESTIMATED INCOME
$300,000,000
$45,000,000
$50,000
$275,000
$500,000,000
$75,000,000
$75,000
$465,000
$1,000,000,000
$150,000,000
$125,000
$975,000
$1,500,000,000
$225,000,000
$175,000
$1,500,000
YOUR ANNUAL SALES
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WWW.
S O U T H E R N T R U S T.COM
NMLS ID #2921 (www.nmlsconsumeraccess.org) Southern Trust Mortgage, L.L.C. lends in the following states: D.C.(Lic #MLB2921), DE, FL, GA(Lic #16579), MD, NC, NJ, OH, PA, SC(Lic #MLS-2921), TN, VA, WV(Lic #ML-34191). Southern Trust Mortgage is proud to be an Equal Housing Lender and Equal Opportunity Lender.