BuyAZcashflow.com  
                                             
Wholesale Properties on Sale
  • Home
  • Multi Family
  • Sell Your Home
  • About Us
  • Contact Us
  • Blog
  • Private Mortgage Investing
  • Land

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...
  • 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.
After years of experience, our team has learned to identify ways to improve the rate of return...
  • 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.
The above factors make some deals better than others, but private mortgages offer considerably higher returns than traditional mortgages, and they outperform the stock market over the long term.

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.
 
Powered by Create your own unique website with customizable templates.