If the answer is yes, please pay very special attention to the following information because it could allow you to make thousands of dollars more in your investments over the coming years simply by increasing the yield on the same money you’re investing now.
I am a professional and qualified Real Estate Investor here in the Knoxville area and I’d like to spend a few minutes informing you about how you can make your investments grow at two to five times your current rate. Yes, I know it sounds too good to be true, but it isn’t. What I am going to share with you has been going on in every city in America for years.
Financially intelligent people have been utilizing this investment for years. In fact…….
There have been entire companies built around this investment concept and those who do it properly have grown huge fortunes and retirements.
This is a very safe investment that produces high yields while at the same time providing security and liquidity. What investment am I talking about? Your thinking Real Estate, aren’t you? Well, you are partly correct. What I’m really talking about are……..
Private Mortgage Loans
Private mortgage loans are what allow investors like me to buy quantities of houses that most people would never believe. Yes, I have access to credit lines, mortgages, and other tools but when I need to buy a house fast without the qualifying and red tape, I call one of my private lenders. They are excited to earn high safe returns from someone they know and trust. They like knowing where their money is and seeing it used to improve a residential property. They love the security of knowing that their loan is secured by the large equity of the home.
Let me see if I can answer some of the questions you may have about making private loans.
Who Borrows at High Rates?
We do because we have learned that…..
It’s Not the Cost of Money That Counts
But the Availability of the Money.
Private loans make it possible to acquire good deals in houses because the funds were available immediately to be invested where banks may have taken weeks to release the funds. I have become very skilled at locating good deals on houses, sometimes 3-5 houses a month! Most of these home owners are selling at discount because they have an urgent need to sell. They can’t wait for me to get a loan. I have to solve their problem fast to get the great deal. Having that money available can make or break the deal and paying a higher interest rate is irrelevant compared to the loss of thousands of dollars in profit if the money weren’t available.
What Kind of Loans Are Private Mortgage Loans?
Let’s clarify what a private mortgage loan is. It is a loan that you make to a real estate investor and in return your loan is secured by the actual property that the investor purchases. That gives you security. I’m not talking about high loan-to- value loans like the banks have been making lately on homes. We deal with very low loan-to-value (LTV) loans. By that, I mean no higher than 65-75% of the value of the property securing the loan. That gives you additional security. This means that if a house is worth $100,000, we are buying it for $65,000 to $75,000. This is a much safer approach than lending institutions take. Banks make loans at 90%, 95%, or even 100% LTV’s. There is just no room for much security.
Do I need a lot of money?
No! We have lenders making us loans as small as $5,000. The amount of the loan is determined on an individual case. Most loans average $15,000 to $25,000. Since most our deals require significant rehab, our average loans is between $20,000 and $25,000.
Who Handles all of the Details?
We will. It’s our job to get you proper documentation and protect your investment. All of this costs you nothing. We as the borrower pay all of the costs. If you make a $25,000 loan, you send a check to the closing agent for $25,000 and get a mortgage in return for $25,000.
How do I get Paid?
Most of our lenders enjoy the highest rates we offer by letting the interest accrue on their money. For a lower rate of return, we can make quarterly or monthly payments.
Is This a Long Term Investment?
It can be any term you want. Most of our investors choose a 3 year term. Often, our deals run their course within 6 to 18 months. Once a house has been sold or refinanced, you will receive your principal amount back plus any interest you let accrue. If another deal is available and needs funding, you can roll it right into that deal.
What if I want to Liquidate?
If you want out of the loan, it will take 2 to 4 weeks to pull your money out. You really shouldn’t make mortgage loans with money that you think you will need shortly, but we usually have a list of investors ready to step into your place should you need to liquidate.
Is my Investment really as safe as it sounds?
Yes, We follow several simple rules to ensure this. All of our closings are handled by attorneys and title companies. All of our mortgages and deeds are recorded at the county courthouse. You are also welcome to drive by the property and even see inside if that’s important to you.
Isn’t the real estate bubble about to pop?
Money is made in real estate during all market cycles. Yes, we are due to see a slow down in appreciation of residential real estate. We buy real estate at a discount no matter what the market is doing. This margin allows us to profit during all stages of the market. Is the down times when uneducated investors and speculators tend to lose money or not invest.
Is this a mortgage pool?
No! You will be making the entire loan by yourself. You alone will get a lien against the property.
Can I use my IRA to make loans ?
Yes you can. Most people don’t realize that you can invest the money in your IRA in real estate loans. We are experts in this type of transaction. There are many rules and regulations involved in doing this. Your IRA must also be with a Third Party Administrator that allows this type of investment. Most likely you would have to transfer your account to a company that allows real estate investments to be made with your IRA.
We have selected Equity Trust Company as our preferred Third Party Administrator. You can read more about what they offer at www.TrustETC.com. We also have Equity Trust Company’s information packets available for you.
How do I know I will get my money and interest back?
As mentioned above, all the documents are recorded at the courthouse. The house could not be sold without your mortgage being released. You will have what is known as a lien against the house until it is sold. We buy houses to make money. This is our business. We don’t get paid until we sell houses. You can rest assured that we are always working toward an end that gives us our profit quickly and gets your money back to you. Most of our lenders turn around and give us the money to do it again.
What kind of documents should I receive?
Your closing package should contain the following:
1) An original Promissory Note
2) A copy of the deed of trust. The original will be recorded and mailed to you.
3) A fire insurance endorsement naming you as lender.
In Summary
Well, we have covered a lot in this short report. I hope I’ve opened your eyes to the opportunity and awesome power of making private loans. If it appeals to you, you can get started right away. While most people are complaining about the low rates they are getting on their CD’s and other low paying investments, you could be receiving double digit returns all of the time.
Private lending is an incredible way to build wealth and most people aren’t even aware that it exists. You are not one of those people. If you have any questions give me a call or click HERE to submit a simple info form. If we need to, we can discuss opportunities for you over lunch or over the phone. Thank you for your time and I look forward to hearing from you.
