Safe Returns of 10% on Your Investment
Do you have IRA or investment capital that is not currently earning a high rate of return safely?
Countless Americans owe their financial success to real estate!
We have several programs available to anyone who desires to build long term wealth through real estate, and we are always looking for money partners to share in our success.
How does the Private Lender Program work?
So, what is a private loan? It is a loan made to a real estate investor that is secured by real estate. Private lenders are given a first or second mortgage that secures their legal interest in the property and secures their investment.
This is not a loan with a high Loan-To-Value (LTV) ratio that conventional banks make on homes. Banks can get into trouble because they make loans at a 90%-95% or even 100% LTV ratio, leaving them no room for transfer costs if they are ever forced into a position where they have to take back the collateral property.
We offer very low Loan-To-Value (LTV) ratios to our private lenders to increase the security of the loan. Our standard LTV ratios are 70% of the value of the property securing the loan, and can be as low 60%.
For example, if a property is valued at $100,000, our private lender will never have to loan more than $70,000 on the property. That's a 7O% loan-to value ratio. This is a much safer approach than that taken by conventional lenders. You, as a private lender will never lend more than 70% LTV. lt is in your best interest to minimize risk and maximize return and this is why a loan should never be made without a 30% safety net. We don't violate this rule because your security is at stake.
A private loan gives you greater control over your investments and safely makes them grow at two to five times your current rate. This may sound too good to be true; but it's not! Many private lenders just like you are currently enjoying these high rates of return with minimum or no risk.
This is a very safe investment that produces high rates of return while providing a higher level of security and liquidity. You've seen how unsure and volatile the stock market can be. Maybe it's time to consider alternatives.
FREQUENTLY ASKED QUESTIONS
Who borrows at high rates and
lnvestors like us do. ln our business, it's not the cost of the money that matters, but having quick access to funds so we can capitalize on opportunities. Our company can acquire good deals because we can act fast and close with cash. Private loans give us an advantage over our competition who take weeks to go through the bank approval process in order to purchase properties. Also, banks will generally want to loan on the purchase price, not the value of the property, in effect penalizing the investor for finding a great deal. Having access to funds is imperative in real estate investing, so a higher interest rate is a small price to pay when compared to the risk of losing the deal.
Who handles all of the
We do. We make the loan process hassle free for our private lenders by providing proper documentation to protect your interest. lt costs you nothing; the borrower pays all costs. lf you make a $100,000 loan, you send a check to the closing attorney for $100,000 and you get a mortgage for $100,000. We will provide you with a copy of the mortgage (the original will be recorded), an original promissory note, and hazard insurance naming you as mortgagee.
How do I get paid?
There are several ways to set up your account. You can receive monthly or quarterly interest only payments or you can choose to let the interest accrue until the property sells. The majority of our lenders prefer to receive a one time principal plus interest payment at the completion of a project. However, it's your investment, so you should decide how you would like to be paid.
a long term investment?
We have lending programs for short term projects of 3 to 6 months as well as projects of up to a year or longer. You can pick the project that best meets your investment goals.
What if I need to liquidate?
lf you need your funds back before the end of the project we will need 45 days written notice, because we will have to replace your funds with those of another investor. There is no penalty for early withdrawal, unlike a bank CD!
How do I use my IRA or pension
Making real estate loans is a widely accepted use for IRA's and other retirement plans. lt's a common misconception among Americans that the only investments allowed in a retirement account are stocks, CD's and mutual funds. The truth is that broader investment options, such as private mortgages, have been available to the public since the IRA's inception in 1975. The retirement industry has been dominated by large transaction driven custodians who have focused on a narrow universe of investments. Think of the power of loaning out funds safely, at high interest rates, that are tax free or tax deferred!
ln order for you to use retirement accounts for loans they must first be administered by a third party custodian. One custodian we work with is Equity Trust Company. You can visit them on the web at http://www.trustetc.com, or simply give us a call and we can help you set up your account. Once your account is set up, you simply notify your custodian about the investment you would like to make and they'll send a check for the amount of the loan. All that's left to do after that is sit back and watch your investment grow, tax free or deferred!
What are my options if Capital Home Buyers doesn't pay?
While there are several options, let me assure you that we only make sound investment decisions and the odds of needing to exercise any of the options are slim indeed. Each property that we acquire is put through a rigorous financial evaluation to determine profitability before the property is ever purchased. We also invest our own funds into each of our projects because if we aren't confident in our investment decisions, why should you be? Integrity is an essential part of our business and a big part of the reason we have the support of private lenders like you.
However, to answer the question:
- The payment schedule on the note could be restructured. For example, let's say we are behind on payments to you. Capital Home Buyers would like to keep the house and finish the project, but we can't come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and make an extra payment on the arrears, or you could simply add the arrears to the principal balance and extend the term of the loan. That way you would be collecting interest on interest for the remainder of the loan. There is always a way to restructure if both sides are willing.
- Capital Home Buyers could deed you the house. You would get a house at a greatly discounted price and an opportunity for tremendous profit by reselling it.
- As a last resort, you can
simply foreclose. The foreclosure process is as simple as sending your note and mortgage to
your attorney and saying 'Foreclose". Then just sit back and wait. More often than not,
before the foreclosure process is complete, someone will be calling your attorneys office
with a payoff letter and your loan will be paid off. When this happens, you will collect your
principal balance, all accrued interest, and all attorneys fees, court costs and any other
expenses you have incurred in connection with your loan. lf you end up with the
house, you don't have to keep it. You can sell it for a fair
price and still produce a profit over and above
the already high yield on your loan.
Capital Home Buyers has never missed a payment to a private lender, and we've probably provided more information on default than is necessary, but we want to make sure you have all the facts and know your options.
Are you ready to put your money to work?
Private lending is an incredible way to build wealth in a way that most people aren't aware exists. I hope you're excited about the incredible power of making private mortgage loans. While most people are complaining about the low rates they are getting on their CD's and other low paying, volatile investments, you could be receiving a safe return of 10%.
Don't continue to let other people control your money only to get a return that barely keeps up with inflation. Take control of your investment capital and make it work for you!
If you are ready to discuss the fantastic opportunities available to you as a private lender, just call us at 518-221-7071 or fill out the form below and we will personally call at your convenience.
All information is kept "strictly confidential" and all investor funds are safely secured by local area real estate.
Capital Home Buyers
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All information kept strictly confidential