Topic: ☆☆★Private Money Loans★☆☆ Innovative investments☆☆★ (Read 535 times)

Not sure I follow you good sir, a deed is a little collateral? Thought I explained the escrow and collateral part pretty well.
Coins are held in escrow until the letter of intent is signed, more then likely a LLC is formed with all lenders as owners and the property is purchased under that name.
Deed of trust = Collateral
Escrow is held.

Keep in mind a common scam is to offer a great loan deal for a little collateral.  Then they disappear with the collateral.  Always use escrow with new users!

Hi, BTC lenders

NOTE: We changed verbiage for legal reasons

I am an experienced real estate investor who is always on the look out for private money. If you do not know what private money is in the real estate investing world, it is a loan made from person to person with a lien on the property usually short term (not really short term in btc land).
The way a private money loan works is, we get a couple of people with some money ( we would be looking for investors of 1 coin or more, due to accounting.)  purchase a property with the funds. The investments are backed by a deed, yes a deed the best collateral you can have.


How these deals are structured  is
we get owners willing to escrow funds with a trusted board member. This is the exact same thing banks do with title company's and/or lawyers send the money for them to hold until the deed is recorded AKA closing. We ask this because most sellers will want EMD if we can not fund the purchase we lose that money it can range from 200-5000.
We secure a property and sign a letter of intent to purchase the property, for every property purchased a new LLC with the investors as owners, this allows for quick sale of property in case of default with out having to go through costly prolonged process. After property is sold the LLC is usually disbanded. This is also for legal reason, this is called a Member-managed LLC and allows us not to be registered as a security.

The general terms are interest only payments after 3 months, with 6 months to Renovate and sell the property with the option of a 6 month extension. If a 6 month extension is required the interest rate usually increases 5%. In the case the property is not sold in a year, the property will be sold at a discount to cover all lenders funds + interest. This normally never happens due to the fact the properties are being sold at a discount to attract fast sales in the first place. "Real Estate investing 101, faster sales are better sales! rather make 20k 12 times a year then 40k twice a year."

Loan Amounts
$25,000 - $250,000 we try to work in the 60-90,000 dollar range.
Rates
15% APR
LTV Max
65% after repair value (ARV)

Definitions
EMD is a earnest money deposit, and is non refundable fee the seller keeps to insure he is not taking the property off the market for no reason. NO LOOKY LOU'S! Not to be confused with due diligence fee.
LTV is loan to value
ARV is after repair value
Closing is the time all the paper work is signed, not to be confused with recording of the deed this is the official transfer.

Each private loan would depend on the property itself.
All loans would be tied to USD due to the time frame.
If anyone has questions, comments or concerns or would like to know more about private money or real estate investing in general. Feel free to ask!