Advantages of Private Mortgage Investing
We invest in private mortgages for one reason...
The advantages of private mortgages far outweigh paper investments
There are numerous reasons private mortgages are superior to other investment vehicles and here are some of the primary benefits of hard money lending...
The advantages of private mortgages far outweigh paper investments
There are numerous reasons private mortgages are superior to other investment vehicles and here are some of the primary benefits of hard money lending...
- Safety Your money is secured by a 1st position mortgage lien, which is further protected by title insurance and a hazard insurance policy. House burns down - you get paid! Title problem - you get paid! Also, the amount borrowed will never be more than 65% of the quick-sale value of the property. This leaves a lot of equity in the property as a safety cushion in the event of default.
- An Investment You Can Touch This is an attractive feature for investors. Stocks and bonds tumble all over the place and are controlled by some faceless “expert”. You can never really touch your investment. There is an inherent sense of stability people relate to tangible assets such as land and buildings. Values fluctuate, but not as wildly as stocks and bonds and real estate virtually never goes to zero; thus, there is less risk of losing your principal investment.
- Professional The principals are seasoned real estate and finance professionals and only use other seasoned real estate professionals as third party vendors when conducting transactions. This adds another layer of safety and security for the investor.
- Completely Hands-Off This can be a completely passive investment leaving more quality time for you and your enjoyment. You’ll leave the particulars of underwriting, closing and servicing of the loan to the real estate professionals. With this type of investment, you won’t have to worry about midnight calls from tenants or lie awake wondering if your stock portfolio will crash the next day.
- Compounding Many “standard” investments such as high-yield CD’s compound one time per year. Our hard money model allows us to compound investor money sometimes up to 3 times per year, thus dramatically increasing investor ROI.
- Flexibility You can choose when to invest and how much to invest.
- It’s Fulfilling People like the idea of being a bank which, in essence, is what you’re doing. Why not make a fortune in real estate lending, like banks do, if you have the resources available to do it?
- Diversification Branching out into other asset classes enhances investor security.
- Easy to Understand You don’t need a PhD in puts, calls, options, candlestick charts, etc. to understand this investment model.
- Predictability Your returns are not dependent on the whims or daily mood of the stock market. They are determined at the time the loan is written, so you don’t need to monitor charts or the daily news to know what your returns are going to be.
- Proven, Sound Investing This type of investing has been around longer than the stock market, longer than the United States – even longer than paper currency!