HOW THE PROCESS WORKS

Minimum Investment

When working with private lenders, $50,000 is our minimum standard investment. When first investing with us, a lower initial investment amount may be agreed upon to ensure you’re confident when working with our company.

Mortgage Terms

The majority of our loans are set up on a 12-month note, but that can change depending on the size of the project. If we are doing a teardown and rebuild, we will have to wait on the county inspectors for many approvals, which can cause delays. We account for all of those details upfront and will give you an estimated time frame for the return on your investment. Also, we do not pool funds; your funding will be tied to one piece of property secured by a deed of trust.

Payment Schedule

Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we may pay monthly just like a typical mortgage.

First or Second Lien Position

The investor, as “mortgagor,” has the right of first lien holder and power of sale on the property. The first lien position is placed behind a senior mortgage. You are probably used to hearing the term first and second mortgage. The second mortgage is a junior lien because it’s in second position. The senior lien or first mortgage must be paid prior to the second lien.

• Investment Terms and Conditions
  • Minimum investment: $50,000
  • Interest rate: 10% annualized
  • Payment schedule: lump sum paid at closing
  • Mortgage terms: 12 months (projects usually completed in 6 months)
  • Return of principal and interest: paid back at closing
  • First or second lien position
  • Option to renew
  • All documents recorded

RISKS VS. REWARDS

You are making a 10x greater return on your money!