• What is Private Mortgage Lending?

• Is it a safe investment?

• Why invest in Real Estate Lending?

• How is my money protected with Private Mortgage Lending?

• What happens if the borrower does not pay back the loan?

• What happens at the Trustee Sale if the borrower defaults on the terms of the loan?

 

 

What is Private Mortgage Lending?

• It's an investment vehicle securing a collateralized loan on Real Estate.

• It gives the Investor a high yield return, normally over a short period of time.

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Is it a safe investment?

• Yes! The greater the equity in real estate, the lower the risk.

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Why invest in Real Estate Lending?

• Higher interest rate return than found in banks.

• Safe and secured with good equity.

• Customized loan terms and length as private investor desires.

• No cost to private lender.

• Monthly income at agreed rate of return.

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How is my money protected with Private Mortgage Lending?

• A deed of trust is recorded as evidence of the mortgage obligation against the subject property.

• A signed promissory note in the same amount as the deed of trust is held by the investor.

• Equity in the real estate asset the borrower does not want to lose.

• Insured title through a title and escrow company.

• Title and escrow company to collect monthly payment on behalf of investor.

• Full disclosure made; appraisal, credit report, job history and more.

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What happens if the borrower does not pay back the loan?

• We put the borrower in default and proceed with a trustee sale on the secured property.

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What happens at the Trustee Sale if the borrower defaults on the terms of the loan?

1. A borrower pays off the amount of the loan at or before the trustee sale for the property.Then principal, interest to date and Trustee Sale costs are returned to the private investor.

2. Private lender receives the property securing the loan for the amount owed.The private investor can then sell the property to recover the amount loaned.

3. Borrower may file bankruptcy before the Trustee Sale, in which case the Sale will be temporarily halted. Investor must petition the bankruptcy court for a stay.The court will grant the stay order, but this process may take up to one year. During which time, our investor could make a 25% yield on funds in default.

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