Copper River Funding

Craig T. Gaudio, CEO

Originally, growing up in Palm Beach County, Florida, Craig and his family moved to Eastern Idaho in 1997 with his environmental technology development company. Craig formerly served as the CEO for Environmental Solutions and Technology, Inc and holds two US Patents in the waste-to-energy field. Craig spent three years developing patent-based projects overseas with offices located in Livorno, Italy. Time away from family and geo-political events in the early 2000's led Craig away from international project finance and into commercial and residential finance in S.E. Idaho with the formation of Nexus Financial Group, Idaho.

Craig, his wife Sherri and their three children love spending time outdoors, riding horses, water-fowling and generally enjoying the serene lifestyle the great Northwest has to offer.

"My passion of identifying new market niches and creating platforms to allow others to benefit from drives me every day"

Michael S. Peart, COO

Growing up in New Jersey and Florida, Michael went on to serve in the U.S. ARMY, participated in Team Spirit - South Korea, and received an Honor Graduate award in Multi-channel communications, a Sharp Shooter medal and the ARMY Achievement Medal. Upon completion of his service at Ft. Lewis, Washington, Michael began school at Florida State University where he graduated in 1993. After two years of working as a loan officer for a national lender, Michael started Nexus Financial Group, Inc. in 1995 with his brother Brian. They were blessed to see their hard efforts succeed, to include a Commercial Division with over 475 net branches, in addition to a national publishing division - Top Producer Magazine. Michael's interests have grown over the years to include Investment Strategies, with an emphasis on the study of Mega Trends and Contrarian Thinking, in addition to Predictive Modeling Analytics. His investment approach has been shaped primarily by alertness to the macro events shaping our world, and in particular, two Proverbs...."Pride goeth before destruction," and "the diligent see danger and take refuge, while the simple keep going and suffer for it."

It was through the interests mentioned above that Michael reunited with one of his best childhood friends - Craig Gaudio. Copper River Funding LLC was formed. Michael and Craig's calculated approach is to take advantage of today's challenging marketplace by combining their strengths and experience in lending and investing. Their goal is to seek and embrace the numerous opportunities that currently exist by maximizing the combined strengths of a nationwide referral network, a proprietary website platform, and by offering a contractual return on investment to capital partners. Michael resides in Singer Island, FL and operates the West Palm Beach branch for Copper River Funding.

Copper River Funding (CRF) is dedicated to empowering individual and institutional investors while creating valuable, necessary private lending solutions to quality borrowers. Through a community environment we introduce private alternative opportunities in commercial collateralized lending. Acting as an intermediary, Copper River Funding capitalizes on its unique nationwide referral network of commercial brokerages to identify projects deemed suitable for presentation to our growing Committed Capital Partner Network (CCPN). From the beginning, Copper River Funding has been guided by principles respectful of Borrowers and Committed Capital Partners (CCP's) alike.

Copper River Funding services promote reinvestment into the American small business economy. CRF targets mid-range loan opportunities that have been orphaned by banking institutions through increased loan qualification criteria.

The need for private, alternative lending solutions for commercial borrowers has grown exponentially over the last two years. With demand for private lending capital at historic levels, many private lenders have increased their fees to exorbitant levels. This can endanger a potentially successful project. Keeping with core values, Copper River Funding introduces quality, highly collateralized projects to its Committed Capital Partner (CCPN) Network.

Offering fair borrower terms while yielding significant returns, promotes win-win for ultimate project success.

The structure of Copper River Fundings Committed Capital Partner (CCP) Network is guided by four core principles:

1. Choice & Control - In today's investing environment, it is more important than ever for individuals to have multiple choices and complete control of their finances. The CRF structure allows CCP's to remain in control of their finances up to the point of project funding. At no time does CRF ever have control over individual or institutional funds. CRF promotes choice through the introduction of many projects, terms and timelines. CCP's have the power of choice in determining what types of projects, yields, and length of time they are comfortable with. CCP's have the power to choose their personal level of capital participation in a given project that best suits their needs and risk tolerance.
2. Community & Diversification - The CRF Committed Capital Partner Network allows for multiple individuals and institutions to participate in a given project. CCP's can choose a small portion of available funds to contribute to multiple projects creating diversity within the CRF community. This is accomplished through fractional first trust deeds. Each CCP will own a percentage in a first trust deed or mortgage on a project. No second liens are introduced to our Committed Capital Partner Network. This Community environment empowers ordinary individuals to join together to create extraordinary results.
3. Safety & Security - Copper River Funding concentrates much of our due diligence on property valuations. The importance of accurate valuations in a "hard money" transaction is paramount. Accurate valuations shift inherent risksfrom the lender (CCP's) to the borrower by exposing the security of equity in the property. Typically CRF reviews projects that have 40% or greater verifiable equity. Borrowers with 40-50-60% equity demonstrate much greater loan performance than borrowers with 5-10-20% equity. The security to CCP's is a 1st Trust Deed or Mortgage against the property. Security and safety lies in equity of a tangible, saleable asset with sometimes 2 to 1 value in the potential event of default.
4. Rate Of Return - The risk-reward ratio in all endeavors have to be considered carefully. Typically Copper River Funding CCP's will review projects yielding 11-14%. While these yields may not be as high as other equity investment pools they are significant and afford you power of choice in projects unlike pools or funding mills. By providing rapid responses to borrowers in need of short term capital with rates below industry competitors, we gain a unique advantage. The benefit creates lasting relationships with borrowers and brokers that continue submitting projects for the Committed Capital Partner Network to take part in with meaningful yields. Copper River Funding believes if a project requires terms of 17-20% to feel properly compensated, that project has inherent risks we will NOT submit for CCP review. The old adage: "Pigs get fed, Hogs get slaughtered" represents the CRF outlook.

Hard Money is defined as a loan that is underwritten with the condition and value of the property as the primary criteria for approval.

Today’s lending climate has changed drastically and the demand for Private Equity Loans or “Hard Money” has never been greater.

Private Equity or “Hard Money” loans have been a staple for knowledgeable real estate investors for years.

Private Equity sources provide capital more rapidly than conventional lending channels. Hard Money or Private Equity loans typically have fewer requirements for borrowing than customary bank loans with a specific focus on verifiable equity as collateral.

Today’s banks and institutions lending climates have become increasingly difficult and cumbersome. Documentation requirements can be overwhelming and time consuming. Many commercial loan products available just a short timeago no longer exist. Self-employed borrowers find it increasingly difficult for their corporate earnings to translate to AGI (personal adjusted gross income). This makes income documentation very difficult and traditional loan qualification virtually impossible.

Common Uses Of Proceeds are:

• Cash Out
• Purchases
• Short term refinance of balloon note
• Business Lines
• Property Rehabilitation
• Debt Consolidation
• Partner Buyouts
• Equipment Purchases

In an effort to obtain the highest returns and best exit strategies for our Committed Capital Partners, Copper River Funding focuses on a narrow range of loan sizes, LTV and property types:

It is the professional opinion of Copper River Funding to adhere strictly to the loan limits, LTV and property types reflected in the illustration table.

Copper River Funding is rigorous in due diligence of each project. Private equity requires an accurate portrayal of value for safety and security.

Copper River Funding requires an appraisal on ALL real estate projects. Appraisals are to be no older than 90 days and specific attention is paid to “proximity to subject”, “days on market” and “absorption ratings” where applicable for comparables. Any appraisal older than 90 days will be required to update comparables. Appraisals aged more than 120 days will not be accepted and a new appraisal will be ordered by CRF.

In ALL cases, Copper River Funding requires an on-site visit to the property. A loan scenario will never be presented to the Committed Capital Partner Network without an on-site visit by Copper River staff or a delegated CRFrepresentative. This step helps detect fraudulent borrowers prior to funding and provides additional protection to each Committed Capital Partner.

Local due diligence in the project area is also completed through BPO’s (Broker Price Opinion’s) and tax assessors. These additional steps help identify quick sale value of a property in the event of default. If the appraisedvalue and “in-house” determined quick sale value are different, the amount willing to lend will be adjusted accordingly. This is to maintain adherence to the 60% maximum Loan-To-Value (LTV) guidelines.

Two additional valuation tools may be used in pre-screening applicants. Zillow and Cyber Home. While valuations can vary with these two systems, they are quality pre-screening tools.

“Our primary goal is to protect the bottom line for each Committed Capital Partner. The great equalizer in all transactions is verifiable equity”.

Craig T. Gaudio, CRF CEO

Committed Capital Partner Network Community

The creation of the Copper River Funding Committed Capital Partner Network (CCPN) Community is one of the exciting elements of Copper River Funding. In today’s financial climate it’s more important than ever for you to maintain control over your own finances and the CCPN Community fosters this philosophy. At no time does CRF ever have control over your capital. As you will find, your capital resides in your account be it cash, brokerage or Self directed IRA or 401k until such time as you choose to fund a portion or a complete project. At that time-your funds will travel from your account via wire to the escrow agent presiding over the closing.

When you join the CRF Committed Capital Partner Network (CCPN), you empower yourself with complete control of choice over projects you become involved in and the amount of capital you choose to commit to that project.

We accomplish this through Fractional First Trust Deeds. Each Capital Partner in a given project receives their pro-rata share of a First Trust Deed commensurate with their capital participation level as this graphic illustrates. In this 200k loan scenario at 13% interest, we show 4 capital partners come together to achieve funding. The percentage of First Trust Deed ownership is illustrated along with their monthly returns. As shown-Partner 1 commits $50,000, has a 25% stake in the first trust deed and receives 25% of the gross monthly interest income of $2,166.67 equaling income of $541.67 per month. Partner 2 has the exact position as Partner 1.Partner 3 commits a smaller amount as reflected and Partner 4 completes the funding with a $75,000 commitment garnering 37.5% of the First Trust Deed and monthly income of $812.50.

Not all investors are created equally. Some investors have $25,000 to work with, others have $2,000,000 +. The Copper River CCPN platform was created to promote individuals coming together to create extraordinary results through community while maintaining individual choice and control.

A truly self directed Investment for individuals seeking higher yields and tangible, salable assets to collateralize their capital.

Most investors are unaware that retirement accounts aren't limited to stocks, bonds and mutual funds. For over 30 years, the ability to invest your retirement funds as you wish has been a legal practice-save for a few minor conditions. The issue is traditional IRA providers control roughly 97% of the market and like to keep you investing in the "products" they sell.

Self Direction is not a new concept but is a practice growing among investors seeking alternatives to standard Wall Street products.

With a Self-Directed IRA/401k you can invest in:

• Real Estate
• Businesses
• Trust Deeds and Mortgages
• Forex
• Tax Liens
• Private Offerings
• Private Partnerships
• Private Placements
• Limited Liability Companies (LLC's)
• Notes
• Franchises
• Hedge Funds
• Stocks, Bonds, Mutual Funds
• Foreclosures and Pre-Foreclosures
• International Real Estate
• and much more!

For more information on Self-Direction visit www.selfdirectedira.org

Self-Directed IRA Administrators:

View presentation: Webinar Presentation March 4, 2010

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