Q: Do I Need a Lot of Money to Invest?
You can lend as little as or as much as you want. The amount of the loan and
time period will factor into your return on investment.
Sometimes, you may want to start out small with short-term loans until you
get comfortable with these investments.
In most cases, more opportunities and more favorable terms will be available
to those with larger amounts to loan.
Q: Can I Send You A Check Today?
You only send money to close the deal when we have a deal that fits your budget.
In any case, most of the times, you will wire the money directly to the title
company or real estate attorney.
Q: Who Handles All The Paperwork?
Unless you are a highly skilled investor in real estate matters, we will handle
all paperwork and details of each transaction and pay any expenses.
This is done by a real estate attorney or title company.
You begin to earn interest on the full amount of your funds as soon as they
are received. Our goal is to ensure this entire process is hassle-free for you.
Q: Isn't This Too Risky?
Knives are risky, aren't they? But only when you do not use them properly.
We do not make
speculative investments; instead, we focus on making standard, bank-like loans
on properties with equity.
The property is
the security for the loan.
Make no mistake
- investing has risks, but the trick is in how you choose your investments and
their safety net (collateral).
This is our expertise.
For example, your investment will most likely adhere
to these rules:
- It will not surpass the 80% Loan To Value
- You will get a mortgagee title insurance
- You will get an insurance policy on the
- The loan will be closed by professionals
Q: What Kind of Documents Will I Receive?
Typically you will get:
- An original promissory note specifying the terms agreed upon
- A copy of the mortgage. The original will be recorded and then mailed to
- A fire insurance endorsement naming you as mortgagee
- A title insurance policy for the amount of your loan insuring you against
any title defects
Q: How Do You Determine My Interest?
The interest rate depends on many factors, including but not limited to, the
risk involved, the amount of funds loaned, the time period, ability to fund
Q: How Do I Receive Payments?
You will receive your payments as we agree - monthly, or as a lump-sum (your
loan amount plus interest).
Q: How Long Will I Be Investing My Money?
The term of the investment will depend on the deal.
It can be as short as six months, or several years.
It's your money and it's your choice. Short-term loans are typically interest
only with full principal repayment at the time the loan is paid off.
Long-term loans may have amortizing payments (part principal and interest in
each payment) and may have balloon payments, depending on your requirements
and the investment.
Q: What If I Need My Money Now?
You should only invest an amount of money that you can comfortably leave in
the investment for the term of the loan.
For example, your loan may be used to buy and fix a property, then sell it.
Until it's sold, your money will not be available, except interest payments.
Unlike in the money market, you cannot withdraw your investment at a moment's
Of course, you get a much higher return than you can get in the money market.
On the other hand, Promissory Notes secured by mortgages are purchased every
day like stocks. We can assist you to sell the note if necessary.
Q: How Many Properties Do I Invest In?
Each investment will be treated separately as it comes.
Your limit is your choice. If you decide you
like this form of investing, there's nothing to stop you from making multiple
Q: How Do I Setup My Retirement Accounts to Make Loans?
In order to use a retirement account for making loans, it must be administered
by a "Third Party
Administrator" (TPA) that allows real estate investments through a self-directed
Very few retirement account administrators, including those who do have self-directed
plans, will allow you to make real estate investments.
If you would like to get setup, please contact our office and we will provide
you the names and numbers of TPA's that specialize in this field.
Once your account is established, all you do is sign papers to direct your
TPA to make the investment for you.
Typically, there should not be any additional costs to you beyond your regular
plan administration costs. Some TPA's will even collect the monthly payments
for you and deposit them into your account. How's that for hassle-free?
Q: How Do I Get Started?
Just fill the form below and we will promptly get in touch with you.