investing
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
How to Earn 6% or More from Your Undervalued Stocks
For investors who have undervalued/poor performing stocks, that are not giving you the returns you desire, lending against stockscould be a great way to turn your portfolio around. Many investors have solid stocks that aren’t currently performing well, due to the economy. In this economy we can’t afford to buy and hold; we need to make sure our money is working for us for both day and night. If you feel strong that these stocks will turn around and you don’t want to sell, borrowing against these stocks could be the solution to your dilemma. You can borrower up to 95% against those undervalued stocks and bonds. Your shares remain in your own name and never transfer into anyone else’s title or control. You can get the cash loan in one lump sum and you can pay off the loan at any time you like, without any penalty whatsoever. You also get the freedom to swap out collateral stocks for stocks of equal value. You have the consideration for more loan cash if your shares rise significantly and most of all you get your shares back immediately upon repayment of the loan. Borrowing against these stocks gives the investor the opportunity to diversify their portfolio; the cash can be used for any legal investment. If you have been considering investing in real estate here’s your chance!
Here’s how to earn 6% or better with those undervalued stocks.
Let’s look at an example. Tom Smith wanted to invest in real estate, but didn’t have the time or knowledge needed to get started. He needed cash to invest; he had stocks and other securities in his portfolio. He was thinking of calling his stock broker to sell some for the cash, but he felt that they were way undervalued, and could only go up. Some of them were priced at even less then what he had paid for them and he understandably loathed the idea of a conventional sale of his securities at their current low prices. His stock position was now worth $600,000; Tom found a private money broker, who showed Tom how he could lend money to real estate investors in need of financing for real estate deals. This was perfect for Tom; he could now invest in real estate without the hassles that come with owning real estate. Although Tom could have invested much less, he decided that he would invest $400,000. At the 12% ROI his broker spoke of, Tom could replace his wife’s income.
Here’s how borrowing against his stocks came to the rescue. Tom received 85% of the closing market value of the stock on a limited recourse basis (@ 5.5%) that provided that if he had to default, he could forfeit his stocks as complete fulfillment of his loan obligation if it came to that and owing nothing more. This meant that lender could go after no other assets no matter how much the collateral was worth, and in default he’d have no negative credit reporting of any kind. However if his favorite stock rose in price – if it appreciated and grew in value during the loan term – that appreciation was his. He could even use some of it to pay off any outstanding interest, even all of the interest and principal, simply by asking lender to liquidate some shares at loan maturity. In short, he had the best of both worlds. Tom could stay “in and out of the market” at the same time, covered on both ends, while locking in today’s stock value before the shares fell any further. Tom borrowed $400,000 against his $600,000 portfolio @5.5%. Through his private money broker, Tom financed a real estate deal at a 12% annum, fixed yield. Tom is now earning 6.5 % on his non performing portfolio. (12% ROI from private money investing – 5.5% interest rate on his stock loan = 6.5% ROI) For Tom, his loan represented keeping all rights to the future appreciation of his stocks and replacing his wife’s income; giving her the option to pursue other interest. A real win-win.
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 Safe is Your Hard Money or Private Money Investment?
Watch this short video to find out more about how you can invest in private money lending with little or no risk.
How to Deal With Seller Objections
Tip One: Four Ways of Dealing With Seller Objections
There are four ways to handle objections. Here is the list in order of least desirable to most desirable:
Flop! This means not dealing effectively with the objection. (Yes, I know that you are not going to choose this option intentionally.)
Handle the objection. While it’s good to know how to reply to the objection, once the objection is raised it is still somewhere in the back of the seller’s mind.
Melt the objection. This means letting the objection just disappear with time. Many objections are really just the other parties way of saying that they are not comfortable with the situation.
Set the objection aside and then don’t bring it up. Many times if you spend the energy and time to really connect with the other party, then the objection literally melts away.
Preempt the objection. This is the best way to handle an objection–keep it from ever surfacing to begin with.
What You Can Expect From Private Money Investing.
First and most importantly you can expect an annual fixed yield of 10% or higher! Private Investing also offers you portfolio diversification. You have the choice to invest in short or long term investment projects. You will have the opportunity to review the details of every project before you decide to invest. You will receive monthly updates with photos on how your investment is progressing. Unlike your market investments, you have more control over your investment dollars. You don’t have to hand over your money to someone and have blind faith that he/she will invest it wisely. All projects are funded hours before the closing date. The funds will be wired directly to the escrow company/closing attorney, NEVER to the borrower, the broker or his company, thus reducing the chances of fraud. Last but certainly not least, you can expect a low risk investment. There are many steps taken to ensure the private lender is presented with the safest projects possible. To learn more about just how safe private money lending is visit our blog at http://asaferwaytoinvest.com/blog/
What not to expect………..
- No Broker Fees
- No Upfront Fees
- No Hidden Fees
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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