Advantages of Private Mortgage Investing
In the book Harder Working Money, we highlight several reasons why we believe Private Mortgage Investing is one of the safest ways to generate lucrative returns in privately structured deals. While we also are advocates of real estate investments, consider the following ways that being a lender to other peoples’ deals is safer than being the property owner/investor:
|Private Lender||Property Owner/Borrower|
|Defines the rules for a loan he is willing to make||Provides all of the information to qualify for the loan and must follow the rules offered|
|Decides if it’s a good deal/offers the terms unique to a specific deal/borrower||Can either accept or reject what is offered|
|Lawyers create all the legal paperwork in the advantage of the lender.||Signs a confession of judgment and personal guarantee and pays for the legal documents|
|No costs to establish a loan||Pays the down payment and closing costs|
|Named as loss payee on property insurance and title insurance||Pays for the property insurance and title insurance|
|Controls the rehab funding in escrow, to only be released as the property is improved||Does all the work to the property, if there are over runs must be paid by the borrower|
|Less risk: fixed terms and protective equity||More risk: down payment money at most risk, must create the value for profits beyond paying off lender and getting his down payment back|
|Gets paid first||Gets paid last|
|Laws protect lenders capital, last to lose||Foreclosure if default, first to lose|
|Shielded from litigation on the property||Exposed to liability of the property|
The Power of Teams
We are members of the largest, most sophisticated private lending group in the world: MPact Wealth’s Platinum Community of the Bankers Code. This is a group of about 400 seasoned private lenders across the US. We have all been trained with similar methods to structure deals to reduce risk to the lenders. We support each other by funding each others deals.
Real estate is a local business. It is very advantageous to our funding partners to have access to many of the best and brightest people flipping homes in the best markets across the USA.
Opportunities for Participation
We are consistently originating loans to experienced borrowers on well-vetted projects. If you would like to evaluate whether these opportunities are appropriate to help you achieve your financial goals, let’s get to know each other. We only choose to allow participation by a small group of people we are comfortable would be beneficial participants in these short-term loans.
For more information on Turn-Key Private Lending opportunities with Private Mortgages, visit our business site, Capital Value Plays.