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Private Real Estate Lending Revealed

Dear Friend,

Do You Have an IRA or Any Other Investment Capital You're Not Getting at Least a 10% - 12% Guaranteed Return "Safely"?

If the answer is no to the above question, and I'm sure it is, please pay very special attention because the following information could make you thousands of dollars in the coming years simply by increasing the yield on the same money you're investing now, and totally eliminate the need for social security.

I am a Real Estate Investor and a Mortgage Broker, and I'd like to spend the next few minutes talking to you about a way you can control your investments and safely make them grow at three to five times your current rate. Yes, I know it sounds too good to be true and what I'm going to share with you is very common in real estate circles and has been going on right under your nose in every city in America. Smart people have been utilizing this investment for years. In fact....

There have been entire companies built around this investment and those who do it properly have grown to huge proportions.

This is a very safe investment that produces very high yields while at the same time provide safety, security, and liquidity.

Take control of your IRA Pension Plan, Savings or CD's by increasing your yield. Earn 10% - 12% instead of the average 3-5% Interest!

Showcase of Returns

Look at these simple examples...

5 Years
Amount
5%
12%
Difference
25,000
32,100
45,549
13,449
50,000
64,200
91,097
26,897
100,000
128,400
182,194
53,794
200,000
256,800
364,388
107,588
10 Years
Amount
5%
12%
Difference
25,000
42,217
82,987
40,770
50,000
82,433
165,974
83,541
100,000
164,867
331,946
167,079
200,000
329,733
663,892
334,159
Note: The above examples are compound interest - mortgage loans are not compounded. The above chart is used to illustrate the rapid growth of funds when invested at a higher than normal rate.

Private Mortgage Loans

Now there is an alternative for you to consider. That alternative is Private Mortgage Loans.

You can loan money, secured by a first or second mortgage that will not only give you the safety you want, but will also give you the high yield we've discussed!

First, let's clarify what kind of loans. I'm not talking about high loan to value loans the banks and savings and loans make. What we're dealing with here are low loans to value loans. By that, I mean no higher than 70% to 80% of the value. For instance a value of $100,000, you wouldn't make a loan for higher than $80,000. That's only 80% loan to value (LTV). Its obvious why this is a much safer approach than most lending institutions take. The banks make loans 95, 100, 125 or even 135% loan to value ratio. They just don't have any cushion in case of default. On the other hand, when you are dealing with a 80% maximum LTV there is so much equity above your loan that if you ever had to foreclose, the property could quickly be sold not only for enough to cover your investment but quite often at a profit. So in other words.....

If you're Real Estate oriented, this is just another avenue of income for you and even if you're not Real Estate oriented, there are always scores of investors who would love to have the property!

Now, I'm doing a lot of talk about default here, but in reality when the loan is at this low loan to value ratio, default is not common. So let me see if I can answer some of the questions you may have about making loans.

Frequently Asked Questions

Do I Need a Lot of Money?

No! You Can Make loans as small as $25,000.

Who Handles All Of The Details?

Well, we believe that unless you are highly skilled in real estate matters, you should use a good mortgage broker (me). It's my job to get you proper documentation and protect your interest. All of this costs you nothing. All costs are paid by the borrower. When you make a $25,000 loan, you send a check for $25,000. That's it!

Do I Have to Collect Payments?

Absolutely Not! We can help set up your account with a collection agent, we use Mid-Ohio Securities, and have for years, and they will collect each payment when due and deposit it right into your account. This can and should be a hassle free investment. In fact, we strive to keep our investors as far away from the collection process, as possible, for that reason. (Hassle Free) You may be surprised to know that your bank will even collect the payments for you if you wish.

Is This A Long Term Investment?

No! It can be any term you want. You're the boss. Usually we want a five-year term or less, but sometimes we don't care if it stretches to ten or fifteen years. You can pick a term that suits your strategy for retirement. Some investors make interest only loans with a Short-term balloon, some balloon in five and some people prefer the longer term. It's your money and it's your choice. Of course, we are going to come to you with a term that suites our needs. If that works for you, its a go. If not, it's up to us to change your mind, or to find another investor.

Who Borrows These High Rates?

We do. We quickly realized that "It's Not The Cost of Money, But The Availability!"

This also holds true for Real Estate investors. I have made it possible many times for investors to acquire good deals on houses because the funds were available. If an investor can get good at locating good deals, the bank only wants to loan on the purchase price not the value of the house, thus penalizing him for being an astute investor. Having the money available will make or break the deal and paying a higher interest rate is irrelevant compared to...

**The Loss of Thousands of Dollars If The Money Were Not Available**

Remember, you as a lender won't lend more than 70% to 80% LTV regardless. You're making a safe loan. You should never make a loan without a 20-30% safety net. If you don't violate that rule, you should always come out a winner.

What Kind of Documents Should I Receive?

Your closing package should contain the following:

- An original note
- A copy of the mortgage. The original will be recorded and then sent to you.
- A fire insurance endorsement naming you as mortgagee.
- A first mortgage verification (if you're making a second)
- A title insurance policy for the amount of your insuring you against any title defects. - This process is handled by professionals.


Are There Other Avenues of Income From Loans?

Another nice income comes from prepayment penalties. (We always include prepayment penalties on funds we borrow as a benefit to our lender) This is a penalty that is incurred when a loan is paid off early. It's commonly used by finance companies and small lending institutions as another profit center. This penalty can be a percentage of the unpaid balance of three months interest on the unpaid balance. For example, the note could be worded that any time it's paid off before it's due, you would receive three months interest in addition to the regular interest. It's our way of saying thanks!

**These Loans Are Almost Always Paid Off Before They Expire**

If you are receiving a three month interest penalty on a $25,000 loan at 12% interest, we are talking about an extra $750 over and above what you're owed.

Is My Investment Really As Safe As it Really Sounds?

Yes, as long as you followed the guidelines that we've talked about and apply common sense. Mortgages aren't as hands off as mutual funds or stocks or other kinds of non-participation investments, but in return for a little effort on your part, your money will grow two, three or even four times faster than your current investments and in addition, you maintain control.

If you follow some simple guidelines when making loans, your risk will be minimal as best. Briefly, these guidelines are:

1. Make only the LTV loans we discussed...No exceptions!
2. Get title insurance for the amount of your loan.
3. Have professionals close the loan.
4. Make sure, fire insurance is maintained on the property at all times.

Remember that making loans is a business and should be treated like a business. If you set up a simple system and let the professionals implement that system, your loan portfolio can be hassle free and produce staggering yields. Also remember, all costs are to be by us the borrower...not you.

How Do I Use My IRA of Pension Plan or 401K?

Making real estate loans is an approved and widely accepted use for IRA's and Pension Plans. Think of this...you can now make your investment grow rapidly..Tax Deferred, and or even Tax Free.

Since Uncle SAM isn't taking a bite out of your profits until you draw out the money, more money is left in the account to compound and grow. The results are staggering. You'll be receiving interest on interest and... (See the example)

In order for you to use retirement accounts for loans they must first be administered by a "Third Party Administrator" or TPA. This TPA sets up and is approved to administer your loan. This means you will probably have to transfer your plan to one of these TPA's, unless, of course, your present administrator is set up to do that. Again, we use Mid-Ohio Securities.

When your TPA is located simply send the transfer form to them and they'll do all of the work for you. Once you've done that...

YOU ARE READY TO MAKE LOANS!

When you've selected a loan, you simply notify your TPA where to send the check for the gross amount of the loan and you're in business. There should be no cost to you except your plan administering costs. Even your set up fee for collecting the monthly payments from us your borrower could be collected at closing from the loan proceeds if you instruct the closing agent to do so.

Some TPA's will even collect the monthly payments for you and deposit them right into your account.

There are some restrictions when dealing with IRA's such as self-dealing, but you're TPA will furnish you with all of the facts upon request.

If you have any questions regarding your plan or its administration, contact your Plan Administrator. If you need help transferring your IRA just give me a call. I've located the best in the country.

Take Action Now

Well, we've covered a lot in a short time we've had together. I trust I've enlightened you on the awesome power of making real estate loans. If it appeals to you, I can't think of a better time to get started than right now. While most people are complaining about the 3-5% low rates they are getting on their CD's and other low paying investments you could be receiving a bare minimum return of 10-12% or more all of the time.

Not Just Another Hot Stock Tip!
So what's it going to be? Are you going to continue to let other people control your money so you can get a return that barely keeps up with inflation, or are you going to take control and make sure that when you get ready to retire, you can do what you want without worrying about money.

Money lending is an incredible way to build wealth in a hurry that most people aren't aware exists. You're not one of those people who are uniformed any more. If you have more questions give me a call. Perhaps we can get together for lunch or just chat on the phone.

If you have any other questions, please fill out our short form or feel free to give me a call at 800-519-2234 Ext. 223.

Sincerely,

Barry Abraham

1-800-519-2234 ext. 223

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