STRUCTURED SETTLEMENTS What are structured settlements? Structured settlements are agreements reached between personal injury plaintiffs and defendants that provide compensation to the plaintiffs for a specified period of time. In accordance with the terms and conditions of each agreement, the defendant or its liability insurer purchases an annuity from a highly-‐rated insurance company that makes the agreed payments, regardless of whether those payments are paid on a monthly, quarterly, or annual basis, or some combination. How can my clients benefit from investing in structured settlements with Woodbridge? Structured settlement purchases through Woodbridge provide your clients with irrevocable rights to the structured settlement annuity payments that they purchase by means of a court order designating your client as the payee, while providing a contractually-‐guaranteed annual fixed rate of return of between 4% and 7% (depending on the payment stream time frame). What are some of the compelling reasons you and your clients can feel comfortable about the safety of this investment? Structured settlements are funded by highly-‐rated insurance company annuities. These structured settlement obligations are backed by the insurance companies that issue them. To date, we are not aware of any insurance company structured settlement obligation that has gone unpaid. As a financial planner, what do I need to know about structured settlements? Structured settlement transactions do not involve the sale of either a security or an insurance product, so no license is required to sell them. Your broker-‐dealer will view these as Outside Business Activity (OBA). As a non-‐fee based financial planner, how am I compensated when I place my clients in this investment? When you sell a structured settlement to a client, you set your own compensation, earning the difference between wholesale pricing and the price you set with your client. This allows you to earn above-‐average compensation while your clients enjoy annual returns of between 4% and 7%. The following example illustrates this: Want to learn more? Visit www.settlementbuying101.com for a simple and informative video illustrating how Structured Settlements work. For another higher-‐yield product of interest, see reverse.
Two Financial Opportunities with Safety & Yield in Mind Woodbridge Structured Funding, LLC and its affiliate, Woodbridge Mortgage Investment Fund 2, LLC, offer several products that can benefit your clients looking to increase their returns in today’s low interest rate environment. Each of these products is designed to balance your clients’ desire for security and attractive yields that many other financial products do not offer. You can now help your clients achieve greater diversification and balance their portfolios with these lower-‐risk opportunities that can deliver profits to long-‐term and short-‐term clients alike. Moreover, these vehicles offer safe financial growth for your clients while offering you an attractive commission structure. Woodbridge will provide you with daily updated opportunities that you can present to your clients.
Get started today. Call Woodbridge to learn how you can start building client satisfaction and loyalty with lower-‐risk, higher-‐yield products offered by Woodbridge and its affiliates. Call 888.401.2464 for your password to view our website designed uniquely for financial planners www.WSFresources.com.
Call us now at (888) 401-‐2464
Metropolitan Life Structured Settlement Payments: 120 Amount: $2500 Frequency: Monthly Start: 7/1/2013 End: 6/1/2023 Total Payout: $300,000.00 Wholesale Rate: 6.00% Wholesale Price: $223,209.27 Buy Rate: 5.00% Buy Price: $233,759.96 Compensation: $10,550.69
FIRST-‐POSITION COMMERCIAL MORTGAGES
What are First-‐Position Commercial Mortgages (FPCMs)? First-‐position commercial mortgages are short-‐term bridge loans, usually about one year in duration, made to commercial property owners. Each FPCM is secured by a valuable hard asset -‐ the subject property itself -‐ and offers the lender a lucrative yield during the limited duration, generally about 12 months, while providing a recorded first-‐lien position. Isn’t real estate a risky vehicle for my clients? Accepting that every vehicle idea has its own risks, the Woodbridge Mortgage team believes the time to offer FPCMs is when property values are low -‐ as seen in the current economic environment. We believe that there has never been a better time. This FPCM product builds on that concept, offering higher-‐interest; short-‐term commercial loans secured by hard assets with low loan-‐to-‐value (LTV) ratios. Woodbridge looks to keep the LTV ratio low, to create greater equity. That means the hard assets that secure these FPCMs are worth more than the loans themselves at closing, to address potential foreclosure or default situations. All the while, your clients hold a first-‐lien position in the mortgage, and Woodbridge Mortgage Investment Fund 2, LLC (“the Fund”) participates confidently alongside your clients, holding a second-‐lien position in that mortgage. Woodbridge, an expert at evaluating commercial mortgages offers the following;
1. Evaluation: The Woodbridge Mortgage team thoroughly evaluates each subject property before allowing your client’s hard-‐earned dollars, and its own, to be loaned to the prospective borrower. We base the loan on the value of the real estate, so the property will always be worth considerably more than the amount of the loan at closing. We conduct an extensive appraisal and title search of every property to ensure that we have a legally-‐insured first mortgage position.
2. Continuity: Even if the borrower does not make the required regular payments or should otherwise default on the loan, the Fund continues to make payments to your clients as if the default did not occur.
3. Collateral: The equity in the property is your client’s collateral. If necessary, the Fund will be able to foreclose on the property on behalf of your client and itself to provide for the returns that your client expects to receive.
As a financial planner, what do I need to know about FPCMs? FPCMs do not involve the sale of either a security or an insurance product, so no license is required to sell them. Your broker-‐dealer will view these as Outside Business Activity (OBA). As a non-‐fee based financial planner, how am I compensated when I place my clients in this product? When you sell an FPCM to a client, you set your own compensation, earning the difference between wholesale pricing and the price you set with your client. The following example illustrates this.
Call Woodbridge to learn how you can start building client satisfaction and loyalty with lower-‐risk, higher-‐yield products offered by Woodbridge and its affiliates. Call us now at (888) 401-‐2464 or visit www.woodbridgecommercialmortgage.com Call for your password to view our website designed uniquely for financial planners www.WSFresources.com
1-‐year FPCM on a bowling alley in Union City, GA ($2.2M appraised value)
1st lien position (Client) $750,000 2nd lien position (Fund) $100,000
YIELD TO CLIENT YOUR FEE MONTHLY AMOUNT TO CLIENT 7% 2% ($15,000) $4,375.00, for 12 months 6% 3% ($22,500) $3,750.00, for 12 months 5% 4% ($30,000) $3,125.00, for 12 months