GET YOUR PROJECT FUNDED !! LEASED CASH TRADE
I had lunch yesterday at Houston’s, an excellent restaurant, in Irvine CA on my way back from Mom’s funeral and interment with Chris whom I have mentioned in several articles in the newsletter and on our private subscription corporate website http://www.joetufo.com/blog
He sent this over at 7:30AM 2-18-10
OMEGA EIGHT MASTER New LEASED CD Pricing 2-16-2010
Leasing a CD is fairly simple as a DTC BLOCKING FEE is the ONLY fee paid up front.
OMEGA provider can post a CD for Members on DTCC only. Once instrument is placed on screen and verified by Escrow Agent, BLOCKING FEE will be forwarded immediately. This is a non refundable payment. The instrument will be issued for a maximum term of one year and one day with a CD Provider fee of 7% which will be due within 60 days after placement of the instrument on- screen.
The following is the Leased Cash Trade procedures:
- DTC Blocking Fee will be reimbursed from the proceeds of the loan. Client enters the trade with no money out of pocket.
- Choose Leased CD denomination
- Client submits a CIS and Passport and Proof of funds for the Blocking Fee
- Additional fee of $5,000 LLC formation and $3,000 Escrow documentation Fee
- Joint Venture Agreement will be drawn and submit for your signature
- After the forwarding of the CIS, Passport and POF Client can if they choose meet with the CD Provider and the Lender.
- Review of the Lender Documents before forwarding DTC Fee.
- Client forwards Blocking Fee to Escrow.
- Escrow Agent is responsible to verify the cusip/isin number on the screen. DTC Fee is then automatically forwarded from escrow to DTC.
- Lender monetizes the CD at a 50%LTV. If CD is not monetized the money due CD Provider is non recourse and therefore not paid.
- Omega opens Master Holding Account and Sub Account A and B
- Trading will begin from the Master Holding Account after clearing compliance within 14-21 days.
- No personal liability. All activity run through a LLC
**NEW DTC FEES EFFECTIVE 2-16-2010**The BLOCKING FEE is based on the amount requested as follows:
375,000 Euros for CD amount between- 1 Million -10 Million = (CONVERSION RATE 2.16.2010 is 1.36) = $510,000 USD
475,000 Euros for CD amount between -20 Million – 100 Million = (CONVERSION RATE 2.16.2010 is 1.36) = $646,000 USD
590,000 Euros for CD amount between- 101 Million – 200 Million = CONVERSION RATE 2.16.2010 is 1.36) = $802,400 USD
690,000 Euros for CD amount between- 201 Million – 300 Million = CONVERSION RATE 2.16.2010 is 1.36) = $938,400 USD 790,000 Euros for CD amount between- 301 Million – 400 Million = CONVERSION RATE 2.16.2010 is 1.36) = $1,074,400 USD
890,000 Euros for CD amount between 401 Million – 500 Million = CONVERSION RATE 2.16.2010 is 1.36) = $1,210,400 USD
Note: All Blocking Fee rates are subject to change. Fee effective date 2-16-2010 Prices subject to change. |
100M CD
50M is monetized
Joint Venture receives $48,500,000 after 3% Broker Fees
-$7,000,000 Reserve for the CD Provider payable in month two
-$300,000 interest reserve month (1) and month (2) to Lender
-$8,800,000 deducted from initial loan proceeds
-$654,000 DTC Fee, LLC formation and Escrow paperwork ($8,000)
$40,546,000 after reserves and Broker fee
THIS IS A NO RISK CASH TRADE. You receive $654,000 contribution before the trade commences from the 50m loan within the first 3 weeks. You enter the trade with no money out of pocket.
Party “A” and Party “B” collectively will trade from the Company Master Holding Account the amount of $40,000,000. while leaving a Reserve in the Master Holding Account of $546,000 which will be used for potential Company expenses, and working capital which shall be used upon agreement between the Parties. After monthly deductions listed herein, Party “ A” and Party “B” shall split equally the trading profits on a monthly basis to their respective sub accounts.
Collectively Party “A”” and Party “B” will put its $40,000,000 into a 40 week trade. For this example, we are assuming an estimated return of 25% a week or estimated 100% return a month. There is a likely possibility that the returns could be greater, or lower and neither Party makes any representations regarding expected trading returns,
Month One Estimated Monthly profit of $17,500,000 for Party “A” and Party “B”
$40,000,000 in trade Collectively Party “A”” and Party “B”
– $5,000,000 set aside toward repayment of principal of $50M (1 of 10 payments)
– Total payments before distribution $5,000,000
Month Two Estimated Monthly profit of $17,500,000 for Party “A” and Party “B”
$40,000,000 in trade Collectively Party “A”” and Party “B”
– $5,000,000 set aside toward repayment of principal of $50M (2 of 10 payments)
– Total payments before distribution $5,000,000
Month Three through Ten Estimated Monthly profit of $17,425,000 for Party “A” and Party “B”
$40,000,000 in trade Collectively Party “A”” and Party “B”
– $5,000,000 set aside toward repayment of principal of $50M (3 of 10 payments)
– $150,000 interest payment to Lender (3 of 10 payments)
– Total payments before distribution $5,150,000 (8 payments)
Each Party estimated return is ** FOR 40 WEEK $174,400,000 USD **
Note: All monies are taxable and each Party should consult with its tax advisor.
Either Party can enter into another trade during the on-going trade or at the completion of the initial 40 week trade for two additional trades.
Terms of the CD will be for one year and one day with options to renew at 7% leasing fee per year. No other procedures will be honored.
LEASED CD PROCEDURES 12-16-2009
Note: It is important to mention here that the actual Lender who will “monetize” the transaction (that is, loan against the 100M CD) has already pre-selected and pre-approved the instrument. Such lender is experienced in such transactions and has worked previously with the original CD Provider. We believe that the loan against the pre-selected 100M CD will be a successful outcome for both Party “A” and Party “B”.
Procedures
1. Application is submitted (see attached) with broker contact info. ***Attached is CIS, Proof of Funds documentation and application. Escrow documents will also be distributed to the Parties along with all contracts.
2. Party “A” provides proof of funds in the amount of the BLOCKING FEE based on the chart as previously sent which shall be submitted with CIS and Passport.
3. The term sheet (the LOI) is issued from the provider. Opening an escrow with Commercial Bonded Escrow Services (www.commercialescrow.com). requires a $3,000.00 deposit to activate the escrow and for the drawing of all contracts . This is refunded within three weeks from the proceeds of the line of credit from the CD.
4. Omega signs term sheet (LOI) and Party “A” wires the DTC Fee and a $3,000 deposit to open escrow.
5. Escrow is opened and the escrow company issues the Escrow and Account Agreements.
6. Omega returns the signed Escrow Agreements and Party “A” wires the DTC Blocking Fee to escrow. (Party “A”) Escrow Agent verifies cuisp/isn number on the screen and DTC Fee is then immediately forwarded to DTC. This is non refundable. No exceptions will be made for this requirement. During this period, the CD is NOT to be blocked and any attempt to do so will cancel contract and remove CD from screen.
7. Bank issues CD provider contract and is provided proof of funds from escrow.
8. Omega signs bank contract and Provider submits it for CD creation.
9. After the contract is executed, CD will be placed and issued on DTC screen only, and no other methods shall be used for this purpose. Codes are provided for viewing with level 7 access.
10. DTC Blocking Fee is released from escrow to the bank and any broker fees are paid at that time.
11. Any 3rd party blocking is done (if requested).
12. Copy of DTC screen shot is provided.
13. After BLOCKING FEE has been successfully paid, collectively Party A and Party B have mo more than 60 days term to pay the CD Provider fees of 7%, which are generated from the monthly trading proceeds, as described above. Failure to do so will result in the cancellation of the contract and removal of the CD, and the outstanding principal balance of the loan, if any, will be immediately due and payable.
14. Lines of Credit are available against the CD at 50% LTV. Terms and conditions are available in a primary contract. Company will net 47% of borrowed funds after fees. Party “A” and Party “B” collectively will trade from the Company Master Holding Account the amount of $40,000,000. After monthly deductions listed herein, Party “ A” and Party “B” shall split equally the trading profits on a monthly basis to their respective sub accounts.
Both Party A and B will be collectively responsible to repay in full the principal of 50M borrowed the principal borrowed, the leasing fee ($7,000,000), as well as the 3% annual interest ($1,500,000).
15. In order to enter into a Platform Trade Program, the Company shall pass compliance due diligence process. In order to do so, each Party must submit the following: a CIS, copy of color passport as well as show the Tear Sheet of the Master Holding Account reflecting the account balances. The compliance process is as follows:
· Compliance officer conducts due diligence on client and funds.
· Compliance generally takes approximately 5 banking days.
· Upon successful compliance, trade contract is issued in five banking days.
· Client gets to speak directly to principle of the trading platform.
Joe Tufo, Certified Cash Flow Consultant, Certified Capital Specialist
CASH FLOW SPECIALISTS, INC.
P.O. Box 844
Alamo CA 94507
925-691-8200 Direct to my desk
800-669-2700 Business
206-984-2853 Fax
joe@joetufo.com
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