WHAT IS PRIVATE LENDING?
lending allows you to take control of your investments and
further grow and compound your wealth, rather than settling
for the paltry returns provided by most bank products or the
volatility of the stock market.
A private loan is
basically a loan made to a real estate investor that is
backed by real estate.
When you make a
private loan, you are given a first position mortgage lien
that secures your legal interest in the property; thus
securing your investment. As a private investor with
us, you are ALWAYS the only lien holder.
The loan to value ratios (LTV) on our
investment projects average 65%
of the value of the property securing the loan and
frequently are as low as 50%. What this means for you
the investor, is that your security interest is always
significantly higher then the amount of your investment.
For example, if we
purchases a property that is valued at $100,000, our Private
Lender will only loan up to $60,000 dollars on the
property. Thatís a 60% loan-to-value ratio, giving the
investor a tremendous amount of security.
A low LTV lending
approach is much more conservative than the LTV standards
used by conventional institutional lenders (the ones who
are in trouble right now and all over the news) who
routinely lend 90-95% LTV; often leaving no wiggle room
should the borrower default on making the payments. When
you work with a large LTV cushion, youíre placed in a much
more desirable position as the private lender.