Why do Private Lenders receive better ASSURANCES from RE Investors than from Mutual Fund Sales People?

How do you protect my money?

We utilize four levels of protection to ensure that your real estate investment is low risk:

1) Your funds are escrowed with the closing attorney until closing. You immediately receive your note. We commit both personally and as a business to pay you. You get a

note and a mortgage signed by both the owner of the property, and by the LLC that owns the

property.

2) Four separate insurance programs. We carry hazard, liability, rent loss, and title

insurance .

Our insurance policy for the property will name you, a mortgagee as an insured. Our

property insurance includes:

• hazard insurance - insurance against damage or loss (fire, etc.);
• liability insurance - insurance in case the property gets sued;
• rent loss insurance - which pays in place of rental income should the property becomeunrentable due to damageor loss.
• a t closing we buy title insurance - insurance which insures a valid title for both the owner a nd the mortgagee.

3) Our 80% maximum loan-to-value (LTV) commitment. Your mortgage will be 80% or less thanthe value of the property. We'll have an appraisal done before closing and you'll get a copy. If the property appraises at $100,000 the maximum we'll borrow is $80,000. Your loan is secured by a first mortgage on the actual property that we purchased. That gives you security. This is not a mortgage pool. You are the bank for one property.

4) Our "don't break" financial rules:

a. We only purchase properties that have positive cash flow from year one.

b. We always maintain a safety fund for each property based upon that property's

rents and annual repair budget. 

Ask yourself:

What assurances do mutual funds or stocks give you?

Can you avoid a loss of 30% or more like the ENRON and WORLD COM scandal?  See the 2000 - 2002 crash.