Frequently Asked Questions:

Q: How much money can I invest?    

A: We do not have an investment limit.  Large sums would likely be used to fund commercial projects or divided over several smaller projects.  Our typical investment amount is $25,000 to $250,000, however, you can often get started with as little as $10,000.

Q: How long do you keep the money out?  

A:  Most of our notes have a 1 year balloon, frequently they are paid off sooner, and we can almost always offer you another investment immediately.  We will typically pay interim interest while we place your money into another investment.  We realize that good returns for periods of time can be watered down if the money sits around so we always make sure the investor maintains their return while we place it safely somewhere else.

Q: What are the typical terms?
A: Ten percent compounding quarterly with a one to two year balloon.

Q: Do you have longer term investments available?
A: Yes, we can also place capital on our medium to long term property holds.  These loan terms are from two to ten years and can provide monthly cash flow for the investor.  These investments offer lower returns, but are much more attractive than certificates of deposits or savings accounts, while providing cash flow for the investor.

Q: Does a lawyer handle the transactions?  

A: Yes, always. The attorney conducts a closing, records the deed and holds your funds in escrow until all closing conditions are met. The attorney has a fiduciary responsibility to make sure all parties to the transaction are properly represented.

Q: How do I invest in my IRA?
A: You will need a truly self directed IRA that gives you complete control of the type of investment.  Most IRAs, Roth, Traditional, SEPs, are placed with a custodian that trades in stocks, bonds and other investment vehicles which allow them to make a commission.  They also call their accounts self directed IRAs because you get to pick which traditional investment asset you would prefer.  But, to invest in real estate, you will need to place your IRA with a company that allows specialized investments directed in your IRA.  We have listed a few companies on this page  Self Directed IRAs 

Q: Can I invest money in an 401K?

A: Yes, 401K funds must first be converted into an Self Directed IRA. 

Q: What are my cost or fees to be a become a private lender?

A:There are no fees, no commissions, no loads.  We pay closing costs, title insurance, and incidentals like wiring fees. 

Q: Who owns the property?  

A: We own the property, but you have a Deed of Trust attached to the property recorded with the county register of deeds. This protects your investment in case of a default or circumstance.  We have never defaulted on a loan.

Q: Is there an early withdraw penalty?  

A: No there is not, if you should need to liquidate your investment, we request 30 days notice to identify another investor to purchase your interest in the property, we only ask that you pay for our additionally incurred closing costs for an another transaction.

Q: Why do you use Private Investors instead of banks? 

A:Sometimes we do use banks.  However, private lenders give us the benefit of being able to act quickly when we spot an opportunity.  Banks have a laundry list of hoops to jump through to process a loan and as they say, time is money.  In order for us to purchase real estate at steep discounts we have to be able to close a transaction quickly.

Q:  Do I need to be present at closing?

A:  No, you do not need to attend any closings all paperwork will be sent to you by the closing attorney.