Typical Rates Of Return For Private Mortgage Notes
Every mortgage is unique...
The situation, property condition, and property location factor into the structure of the mortgage and affect the rate of return. Therefore we must, unfortunately, turn down many deals because they will never produce strong enough returns for our investors.
However, those that do qualify for our turnkey system provide an excellent return for an investor.
Some of the other factors that play into the return an investor can get from a private mortgage are...
Our private lender clients contract with borrowers at 12% APR which can sometimes be higher depending on the timeline to loan payoff and other circumstances.
The situation, property condition, and property location factor into the structure of the mortgage and affect the rate of return. Therefore we must, unfortunately, turn down many deals because they will never produce strong enough returns for our investors.
However, those that do qualify for our turnkey system provide an excellent return for an investor.
Some of the other factors that play into the return an investor can get from a private mortgage are...
- The term of the note.
- The quality of the borrower's credit.
- Loan-to-Value ratio.
- The purpose of the loan.
- Exit strategy of the borrower.
- Direct lending or lending through a mortgage pool.
- By adjusting to terms of the note
- Collecting prepaid interest
- Having the investor's money repaid prior to the consumption of that prepaid interest
- And a plethora of other strategies that escape the notice of many private mortgage companies.
Our private lender clients contract with borrowers at 12% APR which can sometimes be higher depending on the timeline to loan payoff and other circumstances.
