Funding Terms & Conditions

Minimum Pricicpal:

Funding Terms & Conditions

• Minimum Prinicpal - $50,000
• Interest Rate – 10% on average
• Mortgage Terms – 12 months (projects usually completed in 3 to 6 months)
• Return of Principal plus Interest – paid back at closing
• 1st or 2nd Lien position
• Option to renew
• All documents recorded

When working with private lenders, $50,000 is our standard minimum principal. When first investing with us, a lower initial amount may be agreed upon to ensure you’re confident when working with our company.

Mortgage Terms:
The majority of our loans are set up on an 8-12 month note; however, it depends on the size of the project. If we are doing a teardown and rebuild, we will have to wait on the county inspectors for many approvals - thus causing delays. We account for all of those details upfront and will give you estimated time frame for the return on your prinicpal. Also, we do not pool funds – your funding will be tied to one piece of property secured by a deed of trust.

Payment Schedule:
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, greater than a year, we will pay monthly just like a typical mortgage.

1st or 2nd Lien Position:
The Private Money Lender, as “mortgagor,” has the right of first lien holder and Power of Sale on the property. The 1st lien position is placed behind a senior mortgage. You are probably used to hearing the term first and second mortgage. The second mortgage is a junior lien because it’s in 2nd position. The senior lien or first mortgage must be paid prior to the 2nd lien.