Lending Oppotunities | inland-buyers-ca

Interested in Becoming a Private Lender?

We've bought 100s of homes, rentals and commercial properties over the last 18 years, and more than half were purchased using money from individuals who were looking for a safe investment with a fair return. If you're looking for a secure place to put your money where it will generate exceptional returns, read on.

What is Trust Deed Investing?

"Trust deed investing" is an industry term for private mortgage lending. If you, or anyone you know, has borrowed money from a mortgage company to buy a home or rental property, you are probably more familiar with trust deed investing than you think. Private lenders are simply on the other side of that transaction. Instead of borrowing the money and making the monthly mortgage payments, trust deed investors lend the money and receive the monthly payments. Click HERE to see short intro video below.

Benefits of becoming a private mortgage lender:

Private mortgages offer a fixed rate of return. Unlike the stock market, private mortgages, or "trust deeds" pay a fixed, reliable rate of return in the 7-8% APY range, regardless of how well (or poorly) stocks are doing. What goes up must come down, and savvy investors realize Wall Street has had an historic run up which will likely end in a substantial market correction very soon. This will almost certainly create some losses for investors who do not see it coming. If you are looking for a safe alternative to gambling in the stock market, fixed-rate mortgages might be an excellent alternative . They offer a dependable and predictable return, no matter what the markets are doing.
What type of people invest in trust deeds? Our private lenders are typically people who, regardless of age, have managed to accumulate some wealth over their lifetimes and are looking for a way to put their money to work safely-- and without a lot of effort. Their primary concern is almost alway principal protection over taking on any unnecessary risk. They tend to be at that stage in life where they are simply managing their wealth versus trying to build it.
Private lenders are protected by collateral. Bank deposits and cds are considered safe investments because they are secured by FDIC insurance for the exact amount of your deposit. If the bank loses your principal the insurance policy will reimburse you up to 100% of your money. Like bank deposits, private mortgages are also secured, but by local real estate. To further secure your money, that real estate is typically worth 50% to 80% more than your original investment! If for any reason we were unable to return your money, you would soon become the owner of a property valued significantly higher than your original investment. This is why private lenders often feel even more secure than bank customers.
The investment is entirely passive. Although your money is secured by real estate, as a private lender you are free of all burdens normally associated with real estate ownership, including management, maintenance, renovations, rent collections, etc. Unlike traditional real estate investors, lenders are making money with little or no effort-- beyond their initial due diligence. We call this passive income “mailbox money.” And private lenders really do make money in their sleep.
Opportunities for other investments. We sell a lot of houses to other investors, and we often have investments come across our desks that we just don’t have time for. In many cases we offer these opportunities to our network of seasoned private investors who have some experience in real estate and would like to tackle a project or two on their own from time to time. As one of our private lenders it is very likely we will present you with these opportunities should you express interest in having do so.

Frequently Asked Questions:

How long in the investment period? We have a few options for our investors, depending on what their investment goals are, and what we have in mind with the subject property. On our buy-fix-and-sell properties, the investment period is fairly short-- anywhere from 4 to 7 months depending on the amount or work and remodeling that needs to be done. Most lenders start with these projects.
Can I lend for longer period of time? Yes. Unlike many of today’s real estate investors, we are NOT primarily “flippers” of real estate. Although we buy property at prices that would allow us to resell them quickly at a profit, we typically like to hold an assets for a year or more in an appreciating market. These longer loans are preferred by many of our more seasoned lenders, because they help maximize returns by reducing the amount of time their money sits on the sidelines.
Do real estate investors prefer private mortgage lenders over traditional lenders? With interest rates so low, traditional mortgage companies are a very inexpensive source of financing. The problem is their guidelines are very strict in some respects. They do not like to lend on properties that require substantial repairs or remodeling. And since we buy many properties in disrepair, traditional financing is not a viable option. Another issue with banks and mortgage companies is they can take up to 45 days to close. We buy property has deep discounts on the promise we can close escrow quickly. Private lenders allow us to close escrow in two weeks or less.
Has your company ever defaulted on a private mortgage? Thankfully, no. We are proud to say that after 18 years of buying and selling homes, rentals and commercial property, we have never let down one of our private investors. As with every investment, past performance is no guaranty of future performance, but collateralizing and investment with a property worth nearly twice the amount borrowed certainly serves to minimize risk-- especially in comparison to the many unsecured alternatives, such as the stock market.

Call Warren today at 949-945-3902 or email him at InlandBuyers@gmail.com with any additional questions.