Are You Expecting Social Security To Provide Your Retirement?

Dear Friend,

If the answer is no, and I’m sure it is, please pay very special attention because the following information could make you thousands of dollars in the coming years simply by increasing the yield on the same money you’re investing now.

I am a professional Real Estate Investor and I’d like to spend the next few minutes talking to you about a way you can control your investments and make them grow at one and a half to five times your current rate. Yes, I know it sounds too good to be true, but it isn’t. What I’m going to share with you is very common in real estate circles and has been going on right under your nose in every city in America.

Smart people have been utilizing this investment for years. In fact …

There Have Been Entire Companies Built Around This Investment and Those Who Do It Properly Have Grown to Huge Proportions.

This investment produces high yields while at the same time is secured by real estate. The industry standard is between 10 – 14% interest.

Private Mortgage Loans

You can loan money, secured by a first or second mortgage that will not only give you the collateral you want but will also give you the high yield we’ve discussed.

Let me see if I can answer some of the questions you may have about making private loans.

Who Borrows At High Rates?

Real estate investment companies.

It’s Not the Cost of Money That Counts but the Availability.

If a Real Estate Investor is good at locating good deals on real estate, then they need capital to buy them. Having the money available will make or break the deal and paying a higher interest rate is irrelevant.

The Loss of Thousands of Dollars in Profit if the Money Weren’t Available.

What Kind of Loans Are Private Mortgage Loans?

Let’s clarify what kind of loan a private mortgage loan is. It is a loan that you make to a Real Estate Investor and in turn, your loan is secured by the actual property that the Real Estate Investor purchases. That gives you collateral. I’m not talking about high loan-to-value loans the banks and savings and loans make on homes. Real estate investors deal with very low loan-to-value (LTV) loans. By that, I mean no higher than 50 or 65% of the value of the property. Typical LTV is up to 65%. That gives you additional security. This means if a property is worth $50,000, an investor could buy it for $25,000. That’s a 50% loan-to-value. It’s obvious why this is a much better approach than most lending institutions take. The banks make loans at an 80%, 90%, or even 95% loan-to-value ratio. Banks just don’t have any cushion.

You, as a lender, won’t lend more than 50% to 65% LTV regardless. You’re making a better loan. You should never make a loan without a 35-50% safety net. Stick to that rule.

Do I need a lot of money?

No! Borrowers need loans for real estate as small as $20,000. The amount of the loan is determined by the borrower’s needs.

Who handles all of the details?

The investor. It’s their job to get you proper documentation and protect your interest. All of this is done by the licensed title company or closing attorney. All this costs you nothing. The borrower pays all costs. If you make a $25,000 loan, you send the $25,000 to the closing agent and you get a mortgage for $25,000. I teach people to never under no circumstances send money to an borrower. Always send directly to the escrow company to protect yourself.

How do I get paid?

The real estate investor will pay you monthly interest until the property is sold during which you receive the principal back from the licensed title company that is handling the closing of the property. It is industry standard that you can opt for higher interest rates if you want to let the interest accrue instead of receiving monthly payment interest payments.

Is this a long-term investment?

Most loans are needed for 3 to 12 months. The longest I’ve heard of is 2 years. Usually, a real estate investor needs no more than 2 years because it is their goal to sell fast because they only make money when the property sells.

What if I want to liquidate?

If you want out, the real estate investor can reduce the price of the property to try and sell faster or a new lender can buy out the mortgage, but this is not guaranteed. You shouldn’t make mortgage loans if you feel you will liquidate shortly, but the option to try is always available. And unlike a bank CD, there are no penalties for early withdrawal.

Is my investment safe?

No investment can be called safe or guaranteed per SEC laws. There is a risk with all investments. Private mortgages are not FDIC-insured like bank CDs. Private mortgages are not backed by the federal government like bonds are. You must follow these commonsense guidelines that we’ve talked about. Your money can grow two, three, or even four times faster than your current investments and you maintain control. You have to ask yourself what is the risk of earning too little and weigh that against the risk of earning a lot more.

Remember that making loans is a business and should be treated like a business. Also remember, all costs are to be paid by the borrower…. not you!

Is this a mortgage pool?

No! You make the whole loan yourself. You get a lien against the property. You are the bank.

How do I use my IRA or pension plan?

Making real estate loans is a widely accepted use for IRAs and Pension Plans. Think of it, now you cannot only loan out money that has been unavailable for you to use, but you can make it grow rapidly…. Tax Deferred!

Since Uncle Sam isn’t taking a bite out of your profits until you draw out the money, more money is left in the account to compound and grow. The results are staggering…

For you to use retirement accounts for loans they must first be administered by a “Third Party Administrator” or TPA. This TPA is set up and approved to administer your loan activities. This means you will probably have to transfer your plan to one of these TPAs unless your present administrator is set up to do that.

When your TPA is located, simply send the transfer form to them and they’ll do all the work for you. Once you’ve done that…

If you want one that I recommend let me know. I recommend one of the largest in the U.S. because they teach you how it works for free.

You’re Ready to Make Loans!

What are my options if the borrower doesn’t pay?

There are several options but first and foremost get to know the investors you decide to work with.

To answer this question:

1) Call them and see if they will send your money back.

2) The investor could ask to restructure the note.

3) Have them deed you the property back. This is an opportunity for you to get a property at a greatly discounted price. When this happens, you can create a tremendous profit center by reselling the property.

4) If left with no other choice, you should simply foreclose. Foreclosure isn’t the evil, time-consuming, costly legal process that most people think it is. It’s as simple as sending your note to an attorney and saying, ‘do it’. All you must do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney’s office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, all attorneys’ fees, court costs, and all other expenses you have incurred in connection with your loan.

If you wind up with the property doesn’t mean you have to keep it. It can be sold immediately at a fair sale price and still produce a profit over and above your already high yield on your loan.

What kind of documents should I receive?

Your closing package should contain the following:

1) An original Promissory Note.

2) Amended Promissory Note.

3) A copy of the mortgage. The original will be recorded and then sent to you.

4) A lender title policy

These documents provide you with security.

Well, we’ve covered a lot in the short time we’ve had together. I hope I’ve enlightened you on the awesome power of making private mortgage loans. While most people are complaining about the low rates they are getting on their CDs and other low-paying investments, you could be receiving a return of up to 14%.

“Are you ready to take action?”

So, what’s it going to be? Are you going to continue to let other people control your money, so you only get a return that barely keeps up with inflation? Or are you going to take control and make sure that when you get ready to retire, you can do what you want without worrying about money, and if you are retired, squeeze every interest dollar out that you can?

Private lending is an incredible way to build wealth in a hurry that most people aren’t aware exists. You’re not one of those people who are uninformed anymore. If you have more questions give me a call. Perhaps we can chat on the phone.

You can call me at (580)634-8434 with any questions you may have or email me at shawn@lenderssecrets.com

You can write to me at 3802 E. Boggy Depot Rd. Atoka, OK. 74525. 

This is not a public offering. This is not an offer or invitation to sell or a solicitation of any offer to purchase any securities in the United States or any other jurisdiction. Any securities may only be offered or sold, directly or indirectly, in the state or states in which they have been registered or may be offered under an appropriate exemption.