Private Lending

Are you tired of the stock market volatility, low (or negative) returns, and the headaches that go with these types of investments?

Aren’t we all.

Well, an ever growing group of people have discovered private lending and how it can help them earn better returns more consistently.  Many reputable real estate investment companies have created Private Lending programs to bridge the gap between safe, secure investments like CD’s, money markets, under-performing stocks, etc. and very high returns that are traditionally reserved only for the wealthy.

We’re a group of real estate investors who have carved out a niche in our market and are helping private lenders like yourself earn great returns while giving you more control over your investments in the process.

How Does Private Lending Work?

Essentially, a private lending program (also called “Trust Deed investing” by some people) allow you to take control of your investments, IRA’s, and retirement accounts to further build wealth rather than settling for meager 3-6% returns.

So, what is a Private Loan?

A private loan is basically a loan made to a real estate investor that is backed by real estate.

When you make a private loan, you are given a first mortgage (or sometimes second mortgage, depending on your goals) that secures your legal interest in the property thus securing your investment.  We are not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes (which is what got them in trouble. All of our private loans that we offer our Private Lenders are low LTV ratios to increase security of the loan.

As standard, LTV ratios are under 70% of the value of the property securing the loan and frequently as low as 60% to 65%. This means additional security on the investment for you so you are always in a good position.

As an example, if the real estate investor purchases a property that is valued at $100,000, our Private Lender can will loan at the most $70,000 dollars on the property.  That’s a 70% loan-to-value ratio.

A low LTV approach is much more conservative from that taken by conventional institutional lenders (the ones who are in trouble right now and all over the news) who routinely lend 80-95% LTV, often leaving no wiggle room should the borrower default on making the payments.   When you work with a large LTV cushion, you’re placed in a much more desireable position as the private lender.

You, as a private lender have to determine your own goals; however, we suggest you never lend more than 75% LTV which is a very conservative number aimed at providing a cushion to work under. As a lender, it is in your best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. We don’t violate this rule, because your security is at stake.

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