Private Lending

Private Lending

Dear Investor,

K&C Investments LLC. D.B.A. 550-FAST buys several houses each month.

When we pay cash for a house, we use private lenders instead of using our own funds or bank
loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield
when using their money to fund our deals.

Maximum loan to value is 75-80%. That means we will borrow up to $80,000 on a $100,000 property.
The money we borrow is secured by a 1st note and deed of trust (mortgage). Our investor gets
9.00% interest. Monthly payments include principal and interest, or interest only, depending on your
desires.

Interest only payments keep 100% of your principal working for you. Most loans have a balloon
payment due in 1 to 7 years. The term is decided by the investor’s desires.

Sometimes we borrow offering a 2nd deed of trust. For example, if there is a first mortgage for
$50,000, then we can offer our investor a second mortgage of (up to) $30,000. In the case of a
second position, we pay 12.00%.

All private lenders get:
•        Promissory Note
•        Deed of trust recorded against the property
•        Added on to the hazard insurance as the mortgagee
•        Copy of an appraisal or market analysis report
•        Lender’s title insurance
We pay all costs involved to close the transaction. There is no cost to the investor.

To invest, we would first find out how much you are looking to tie up and for how long. We would
then look for a deal that will meet your criteria. Once located, we would call you, give you all the
details. Then you would decide to participate or not. There's never any obligation until after you
approve the deal.

We never co-mingle or pool funds together. One investor... one note and deed of trust.

When you decide on a deal, you’ll send your funds directly to the closing agent at a local title
company or attorney when we’re ready to close. We'll never accept your funds directly.

For some investors we can offer selling existing notes secured by real estate at a discount to yield
11-15%. These types of deals are less common but opportunities to buy discounted notes occur
now and then. Discounted notes would require further explanation regarding risks.

All the houses used as collateral will be located near Colorado Springs in El Paso, Teller and Pueblo
counties. We occasionally have deals near Denver if that is your preference.

A majority of our private lenders currently include many of our family members, seasoned business
contacts and previous sellers we have bought property from. Only recently have we opened this to
others visiting our website.

If you have funds in a retirement account, you can use them to invest. The IRS requires the use of an
approved custodian to qualify for tax deferred or tax free gains. We recommend www.equitytrust.
com to create a self-directed real estate retirement account. We will be glad to discuss this with you
further.

To learn more, or to be added to our private investor list, please call or submit the form at the bottom
of this page. Your questions are always welcome.

Sincerely,
Craig L. Dillion
Craig L. Dillion
Owner, 550-FAST
President, K & C Investments, LLC.
Colorado Springs, CO
www.550-fast.com
craigdillion@550-fast.com
719-635-5667