I am looking for more high net worth individual investors to join our fund , If you are interested in investing in Real Estate and the high returns that are possible without the trouble of dealing with tenants or house flipping, investing in high equity 1st position mortgages may be for you . For more information please leave your info below or call me directly 203-228-3367.
Tom Jacovino
Tom Jacovino
Private Mortgage Investing In recent years a new trend has emerged for investing in real estate on a passive basis. This means the investor does not need to fix up and resell a property or be responsible for ongoing expenses associated with owning a property. This is where the rise of private mortgage investing has begun to gain traction in the real estate marketplace. As the real estate credit markets began to tighten in 2007, an opportunity arose to fund quality real estate transactions that fell just outside banks’ underwriting requirements. This increased demand for loans presents an opportunity for investors to make private mortgages and capitalize on this market inefficiency. Private mortgage loans allow investors to finance real estate with a first lien position, collect monthly payments, and passively earn interest income with the property serving as collateral in the event of non-payment. There are companies and funds around the country that provide investors assistance with due diligence and structuring new loan opportunities. For most investors employing this strategy, capital preservation is the primary focus with earning a healthy yield as the secondary objective. In many cases, there is at least 20% equity within the real estate that serves as collateral for the loan. It is important for investors to have experience in real estate investment or to rely on professional companies that can help ensure quality loan underwriting.
The many baby boomers nearing their retirement age are slowing their accumulation of additional assets and the purpose of their retirement funds is shifting to a more conservative fixed-income yield. Ideally, most investors seek a retirement-type strategy whereby they only need to take out a distribution from their portfolios to subsidize their living expenses and not necessarily spend down the money in their accounts. This is where private mortgages or investment within a mortgage fund is appealing, because it provides ongoing interest income with a limited downside risk on the capital being invested.
The many baby boomers nearing their retirement age are slowing their accumulation of additional assets and the purpose of their retirement funds is shifting to a more conservative fixed-income yield. Ideally, most investors seek a retirement-type strategy whereby they only need to take out a distribution from their portfolios to subsidize their living expenses and not necessarily spend down the money in their accounts. This is where private mortgages or investment within a mortgage fund is appealing, because it provides ongoing interest income with a limited downside risk on the capital being invested.
WHY BECOME A PRIVATE LENDER?
Traditional investment options do not meet the financial needs and goals of most Americans. Mutual Funds, bonds, IRAs, and CDs have delivered mixed results in the recent past. Add to their low performance the onerous fees charged by the big banks and many investors are left in the red.
Stress from an ever-changing market should not be part of your long-term financial plan. That’s why more and more investors have chosen to seek alternative investment options. This demand for creative investment strategies has driven private lending to soar.
As a Private Lender, you take control of your finances and find comfort in a stable return on your investment. Essentially, you decide how much money to lend, the interest rate of the loan, and whom to lend the funds to. This process removes the uncertainties that accompany other investment opportunities.
Private Lenders earn solid returns while minimizing their risk as you are connected to investors who are looking to borrow money from other investors. Our borrowers are typically real estate investors who are looking to fund their next rehab, construction, or commercial project. With real estate as a guarantee, your loan is secured by a real asset, which you are able to carefully choose based on your own selection criteria.
The relationship between a Private Lender and an investor borrower is mutually beneficial. As a Private Lender, you earn a solid return on your investment, while the investor borrower gains access to funding and still comes out ahead in comparison to traditional financing options.
Traditional investment options do not meet the financial needs and goals of most Americans. Mutual Funds, bonds, IRAs, and CDs have delivered mixed results in the recent past. Add to their low performance the onerous fees charged by the big banks and many investors are left in the red.
Stress from an ever-changing market should not be part of your long-term financial plan. That’s why more and more investors have chosen to seek alternative investment options. This demand for creative investment strategies has driven private lending to soar.
As a Private Lender, you take control of your finances and find comfort in a stable return on your investment. Essentially, you decide how much money to lend, the interest rate of the loan, and whom to lend the funds to. This process removes the uncertainties that accompany other investment opportunities.
Private Lenders earn solid returns while minimizing their risk as you are connected to investors who are looking to borrow money from other investors. Our borrowers are typically real estate investors who are looking to fund their next rehab, construction, or commercial project. With real estate as a guarantee, your loan is secured by a real asset, which you are able to carefully choose based on your own selection criteria.
The relationship between a Private Lender and an investor borrower is mutually beneficial. As a Private Lender, you earn a solid return on your investment, while the investor borrower gains access to funding and still comes out ahead in comparison to traditional financing options.
YOU ARE THE BANK
Quickly and easily build a portfolio that fits your financial objectives by choosing from a variety of investment opportunities. You set terms for the loan and control the entire process.
SOLID RETURNS
As a Private Lender, your investment is not at the mercy of a financial manager or the stock market. You’ll know exactly how much you will earn over time as borrowers repay their loans monthly.
FULLY SECURE
When you lend money as a Private Lender, get peace of mind knowing that your investment is secured by heavy equity 1st position real estate mortgages
JOIN OUR NETWORK
Submit your information and our team will get in touch with you to set your lending profile.
RECEIVE PROPOSALS
Here the fun begins. We will come to you with loan opportunities, each backed by real estate.
3
CLOSE THE DEAL
Now’s the time to do our due diligence, we negotiate the loan term together with you and your attorney (always recommended) and finalize the deal once it meets all of your conditions and you approve
GET PAID
This is the really fun part! Collect monthly checks until your investment is fully re-paid. Repeat to maximize your returns.
Submit your information and our team will get in touch with you to set your lending profile.
RECEIVE PROPOSALS
Here the fun begins. We will come to you with loan opportunities, each backed by real estate.
3
CLOSE THE DEAL
Now’s the time to do our due diligence, we negotiate the loan term together with you and your attorney (always recommended) and finalize the deal once it meets all of your conditions and you approve
GET PAID
This is the really fun part! Collect monthly checks until your investment is fully re-paid. Repeat to maximize your returns.
FREQUENTLY ASKED QUESTIONS
What is my loan being used for?
Typically, your loan will be used to fund another investor's real estate investment deals. This may be the borrower's next rehab, construction, or commercial project.
Is private lending risky?
As with every investment, private lending does require you to take a certain amount of risk, although it puts you in the position to determine how risky your investment is. With private lending, you determine the interest rate and re-payment schedule for the loan. When reviewing a loan proposal, you’ll use all available information to determine whether or not you are the right lender for that project. Keep in mind that the loan is secured by real estate. As the principal lender, you would typically be the 1st lien holder on the property, which would put in control of the asset should the loan ever default.
Why do people typically borrow from private money lenders?
Individuals may struggle to get a conventional loan for a distressed property they plan to rehab or they may need to quickly close on a deal. Borrowing from private lenders can be the difference between getting a deal or not.
How long does a private money agreement last between a lender and borrower?
Typically, private money agreements last from 6-18 months to several years (just like a traditional mortgage would). In simpler terms, it can last as long as the lender and borrower agree on. As the lender, it’s up to you to determine the term to maximize your return on investment.
What is the average interest rate for this type of investment?
Private Lender loans typically have an interest rate between 7-9%.
How are the payments made to the lender?
As a private money lender, you have a couple of options. You can work directly with the borrower to determine a monthly payment schedule. Or, you can choose to work with a service that keeps track of the payments, works with the borrower to obtain payment, and then directly deposits the amount into your account.
How do I choose the right loan opportunity?
First, determine the amount you want to lend and your desired return on the investment. Then carefully vet potential lending opportunities and select the one that best fits your needs. During this process, you should vet the borrower and obtain as much information about the real estate deal you are funding as you can. The borrowers are prepared to disclose as much of this information as you need to make an informed decision.
What happens if the borrower doesn’t pay back the loan?
Because borrowers are motivated to establish a strong reputation with lenders, this situation is atypical. In the case that it should happen, the note will go in default and you’d foreclose on the property, just like on a bank loan scenario. We’d be happy to refer you to an attorney to handle this process for you. Often, lenders come out ahead on foreclosures.
As with any business, your results may vary, and will be based on your individual capacity, business experience, expertise, and level of desire. There are no guarantees concerning the level of success you may experience.Each individual's success depends on his or her background, dedication, desire and motivation.
There is no assurance that examples of past earnings can be duplicated in the future. We cannot guarantee your future results and/or success. There are some unknown risks in business we cannot foresee which can reduce results. While we are here to present you with opportunity the final decisions are always up to you. we are not responsible for your actions.
There is no assurance that examples of past earnings can be duplicated in the future. We cannot guarantee your future results and/or success. There are some unknown risks in business we cannot foresee which can reduce results. While we are here to present you with opportunity the final decisions are always up to you. we are not responsible for your actions.