Georgia investments
Financing Your large Commercial Projects
The funding process I am going to describe is unique. It offers Borrowers a simple way to acquire funds for a multitude of reasons, corporate aircraft, real estate, etc. Minimum funding amounts are $15MM for real estate (although will consider viable projects starting at $10MM) and $5MM for aircrafts.
Real Estate Funding (Quick overview):
6-8% interest rate (currently at 6 1/4%)
Not to exceed 5 points (lender & brokers’ fees inclusive)
100% financing (borrower must secure a SBLC for 6 1/2% of loan amount upon issuance of LOI and credited back at closing)
1 yr moratorium on interest payments depending of scope of rehab
$7500 processing fee upon application submission (refunded if loan is not approved and credited at closing)
$15M minimum projects (will entertain strong projects of $10-15M)
No geographic limitations
Must be a viable project
Requirements:
Completed business plan or executive summary including financials
Proof of 6 1/2% from current income or bank statement
Funds must be available at issuance of LOI
NO platform trading, direct access to capital lending!
For more details on the process contact:
James J Bullock
JDB Financial LLC
james@thathardmoneyguy.com
678 383 8438
HARD MONEY LENDING PROGRAMS
Georgia Residential Hard Money Lending
PRIVATE MONEY LENDING
COMMON SENSE UNDERWRITING!
- Up to 100% Financing Available
- 15% I/O
- Points Starting at 6 (5K Flat on Loans Under 40K)
- 70% ARV
- No Score Programs Available (Case by Case)
- Fast Closings
- 48 – 72 Hour Underwriting Response Time
- 6 Months
- No Min. Loan Amount
- Fast Closing
- 650 Middle Credit Score
Programs Also Available in:
Kansas: Kansas City, Missouri: St. Louis & Kansas City, Tennessee: Memphis & Nashville, Illinois: Chicago, Indiana: Indianapolis, Michigan, (Case by Case) Ohio, Pennsylvania – Western PA & Philly, NY: Western & Central New York, North Carolina: & Raleigh Charlotte
Commercial Hard Money Lending:
- · Up to 65% (70% in GA.)
- · Down payment Assistant Programs
- · Seller Seconds OK
- · Distressed Property Lending
- · 100% CLTV (TX Only)
- · 50K and Up NO Max
- · 100% Financing on loans 10M+! (International OK)
- · Nationwide
- · 600 Score Min. (Lower Scores Case by Case)
- · Church Loans
Private Money Investing: How Safe of An Investment is it?
The economy and the banking industry have opened the door for more than just the wealthy to become private money lenders. More and more real estate investors are looking for private money loans and more and more investors are moving off Wall Street and steering toward private money lending. It’s no secret that private money offers an annual fix yield of 10% or more; but just how safe of an investment is private money lending?
As with any investment, there are risks, but working with the right broker can reduce the risk and provide you a consistent flow of monthly income; not to mention portfolio diversification and more investment control. Let’s take a look at the many methods qualified broker should use to add security to PM investments:
First, you should know that most loans are secured by real estate, this alone offers more protection than most Wall Street investments.
The borrower is required to place hazard insurance on the property. The lender (you) will also named on the insurance policy as the mortgagee; as well as the title work. Having the lenders name on the title work, places a lien on the property; ensuring that the property can’t be transferred, sold or refinanced without the lien being satisfied /paid off. On larger loans; Key Man Insurance is often required; as well as, Business Income Insurance. At a formal closing, the lender will be provided with documentation to verify that these security methods have been applied.
Private money loans are normally at a much lower loan to value (LTV) than a bank loan; typically 60 to 70%. Offering the investor an additional layer of protection and wiggle room. The low LTV ensures that if the borrower defaults; the lender should be able to sell the property with 30 to 40% equity, which should make for an easy quick sale to recoup the principle loan amount.
Often the borrower will be required to cross collateralize an additional piece of property to strengthen the loan. Cross collateralization gives the borrower much more motivation to pay off the loan; realizing that default would result in losing the subject property as well as the other additional property collateralized.
You should know that your money will never be sent to your broker or the borrower; when the time comes to fund the deal, the investor will wire the desired funds directly to the Escrow Company/ closing attorney; thus reducing the chances of fraud and gives the investors a stronger sense of investment comfort. The combination of these methods, offers a strong wall of protection for the lender; much more than most investments available today.
Although risk free investments don’t exist, private money lending offers many levels of security and should be a part of every investor’s portfolio.
James J. Bullock of JDB Financial LLC. A small team of active real estate investors and mortgage professionals; working together to network with both private money lenders and qualified real estate investors nationwide. We provide private money investors with qualified, fixed yield, low risk, and high return investment projects; secured by real estate. Thus adding diversity, investment control and a consistent monthly cash flow to the investor’s portfolio.
How to use your Investments Wisely and Benefit from Private Money Lending
Did you know you can use your IRA or Pension plan to invest in real estate property? The majority of investors are feeling the pinch of the global recession and they don’t feel their investments are performing as they should. What these investors don’t realize is that there is another option out there for them called “private money lending”.
Make your Investments Work for you
Most people have been working for awhile have quite a large nest egg saved in their IRA allowing them to consider other options for this money such as private money lending for real estate. Private money lending using your investments in your IRA and other retirement plans is a widely acceptable practice and can offer a very large return when done properly. There are some things you need to know before you use private money lending as an option to earn money through high interest earning loans.
Self Directed IRA
In order to take advantage of private money lending using investments you must have what is called a self directed IRA or a roll over 401k through a custodian. This simply means that you are responsible for making investment decisions on behalf of the investment fund. This allows you to direct your funds anyway you choose fit including private money lending and investment options.
Choosing a Custodian
To get a self directed IRA you must first choose a custodian for your account and roll over your existing 401K account after a job loss, retirement, or change of jobs (transfer funds within 60 days to remain tax deferred). Your new custodian will help you fill out all necessary paperwork and information so the process can run smoothly.
Choosing a Good Private Money Lending Investment
After you have completed the rollover process and assigned a custodian, you get to participate in the fun part which is choosing your private investments such as real estate investment. Make sure you do your research and find a good real estate investment firm that has been in business for awhile. The majority of private money investing options will offer an annual fixed yield rate of 10% percent or more! That means that a 20K investment will yield a 2K annual return on investment or $167 dollars a month just for loaning out your money.
Security
Many private money investments are secured by personal guarantees adding another layer of protection to the lender. Not only that, but there are checks and balances along the way to ensure that you are getting the most out of your loan and protected in the event of a default.
In a lot of cases private money lending investments are outperforming the stock market. This investing method is 100 percent legal according to the IRS and you have complete control over what you invest in and how much.
What is Private Money Lending and how can you Benefit
Many people are confused by the term private money lender. The do not realize that they can profit greatly by participating in something called hard money lending. Private money and hard money lending is an individual or group that negotiates directly on a personal basis to lend money for real estate investments.
The money is funded through your personal investments such as a 401k or IRA or even money you stock piled in your savings account. The money can be used to purchase rental real estate investments or to supplement funds borrowed from a bank to cover down payments. Basically you become the bank.
What’s in it for me?
Hard money and private money loans typically offer a return on investment of at least 10% percent per year. This means if you invest in a real estate property as little as 20k per year, you are going to get a return of $2,000 on your original investment which translates into about $167 dollars per month. Compound that into a 100K investment and you could easily be earning $835 dollars per month just for privately loaning your money out. And that is with a very low return of 10% percent.
Is it secure?
All investments have some risk assessment involved therefore you need to assess your situation to decide if private money lending is right for you. Investing in loans secured by real estate offer a higher rate of return and lower risks compared to the stock market. There are no commissions or upfront fees and the borrower is required to place hazard insurance on the property and you will be named on the insurance policy as the mortgagee.
Many times the borrower is required to cross collateralize an additional piece of property giving them much more motivation to pay back their debt in a timely manner. So basically you are investing in the property without the headaches of being a landlord or contractor.
How do you get started?
The most important step in becoming a private money lender is to make sure you have the money to secure this type of investment. You should have at least 20K to loan out and it shouldn’t be tied to any other purpose other than investing. You must then be able to loan this money out quickly and not have a need for the funds for at least a year. If you have an IRA, you will need to roll it over into a “self directed” IRA with a 3rd party custodian.
Do a search on Google and ask friends and colleagues about their experiences with professional private money and investment companies. You can get started fairly quickly once you find a reputable real estate investment company and fill out all the necessary paperwork and lender applications.
Just How Safe is Private Money Lending?
Trust Deeds or Private Loans/Hard Money Loans are the secret weapon that the successful investors use to earn high returns while the average person places their money in low yield investments like savings accounts, CDs, money markets, and even mutual funds
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