PML Frequently Asked Questions page:3
What if the house is sold after only 1 month?
It’s extremely important to us that we do not waste your time. However, occasionally, situations may occur where we find a buyer immediately. In this scenario, we provide you with two options: we can either move the note to another property, or provide you with a minimum of 3 months interest. Most investors see the strength of our purchase ability at that point, and simply move the note to another property.
When will I receive payments?
Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we will pay monthly, just like a typical mortgage.
Is there a Guarantee on your investment?
Most of our lenders are paid from 10%. Our rates will fluctuate very little, depending on the purchase price and level of rehab involved. The lower the purchase price, the more we can afford to pay as little higher rates to make sure our lenders make it worth their time. We work on a share the wealth model, intentionally focused on projects where all parties benifit.
How long will my funds be held?
No. There is no government backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate. If at any time we were to default on the note, you have legal right to take the home (essentially foreclose on us). Many investors laugh about this one and say, “I hope you’re a day behind on payments - I’d gladly take this one off your hands.” You have to remember that we plan for the worst, and our homes have thousands of dollars of equity in them. So in a worse case scenario, we just don’t make “as much” profit as we originally hoped for.
PML FAQ