What if a property could be purchased for 20% of its value? There might be pretty good potential for profit wouldn't you agree?
That's exactly the case with non-performing loans (NPL's for short). Our program allows you to tap into this massive and highly profitable segment of the real estate industry. Using our expertise and management, we buy notes at steep discounts and are able to generate above average returns for our lenders.
WHY NON-PERFORMING LOANS
- Security - "I'm not so concerned about the return on investment as the return of my principle," Warren Buffet. All notes are secured by the hard asset of the underlying real property with a 1st Trust Deed.
- Discount - We control assets for pennies on the dollar.
- Returns - Ask most financial planners and they say 8% is great. Great if you can get that year in year out but not likely these days. Our lenders enjoy interest in the 15-25% range.
- Term - Shorter terms which can be as quick as 6 months and rarely longer than 36 months. Typical time frame, 12-24 months.
- Options - Notes provide multiple exit strategies such as loan modification, deed in lieu, foreclosure or resale of the note. Multiple options to maximize profit.
- Cash Flow - In some cases before the note investment exit has been reached, they will generate monthly cash flow from borrower mortgage payments or rental income.
- Market - Realty Trac reported that more than 13% of all mortgages are under water. Commercial banks say they have $160 to $170 billion of distressed single-family assets on their books. Add in at least that much from FHA. The opportunity is very large.
- Barriers - Unlike buying a traditional brick and mortar investment property, note acquisition is not as easily accomplished. The good news is, unlike the flipper rush of the last real estate boom that eventually lead to shrinking inventory and investor profits, the higher barriers to entry in the note market will protect it from the heard mentality.
- Funding - Lenders can use funds from self-directed retirement accounts to grow their principal tax deferred or even tax free.
1st Trust Deed Lending
If you’ve owned a rental property you know how time-consuming and frustrating property management can be. But what if you could enjoy the benefits of real estate cash flow without the headaches of property management?
No tenants, toilets or trash…passive income secured by real property, the best of both worlds.
By becoming the bank and lending your investment funds to HGM you too can put your investment income on auto-pilot and enjoy passive income with steady cash flows and no management.
Security, Security, Security. The security of our Lenders funds is our top priority which is why we use 1st Trust Deeds to secure your loan with HGM. The 1st Trust Deed puts you in the first secured position using the real property as collateral for your loan. All 1st Trust Deeds are recorded at the counties the properties are located in with the lender's name or designated entity.
Having property as collateral to secure your loan is one layer of security, the second layer we provide our Lenders is low LTV’s (loan to value). LTV is typically in the 60%-70% range on the properties which includes acquisition and any rehab costs.
Terms are usually just 12-24 months which means Lender capital is not tied up for years waiting for returns. Interest rates are generally in the 8-12% range with interest payments paid monthly.
Investment Funding Options
Personal cash, loans through LLC, LP or Trust, foreign investment through Regulation “S” offering, and through self-directed IRA’s are all acceptable.
Emphasis on Transparency
All Lenders have secure, 24/7 access to the Lender Dashboard where all notes, collateral and interest payments are tracked for you.
Contact us for more details as well as how you can use IRA funds.
SUPERCHARGE YOUR IRA WITH NOTES!
LEVERAGED GROWTH. PROTECTION AGAINST INFLATION AND MARKET VOLATILITY Up and down stock market, measly savings returns, where do you put your IRA funds to get a great rate of return without the downside risks? 1st Trust Deed notes secured by real property may be your answer.
Most people don’t realize it’s possible to use an IRA, SoloK and other retirement funds to invest in 1st Trust Deeds. We regularly work with many of the top retirement trust companies like Provident Trust, helping our Lenders earn above-average returns for their retirement accounts all with the security of the real estate.
Contact us to find out more info on how you can use your IRA funds to invest in notes.