Earn High Returns
Secrets to
Earning Secured, Hassle Free, High Returns
that
Strengthen Local Economies
and
Build Sustainable Communities
Please take time to read through this entire packet since the following information could increase your investment yields by thousands of dollars in the coming years.
We are a group of professional real estate investors and we would like to introduce you to methods that give you greater control over your investments and safely make them grow at two to five times your current rate. Does this sound too good to be true? Well, the truth is, it is not. Many private investors just like you are currently enjoying these rates of return with minimum or no risk.
Smart investors have been utilizing this investment opportunity for years. In fact, there have been entire companies built around this strategy.
This is a secured investment that produces high rates of return while at the same time strengthening your local economy and building a more sustainable community.
You’ve seen how unsure and volatile the stock market can be. Do you want your investments controlled by the events that take place on the other side of the globe? Do you want your investments going to banks that are “Too Big to Fail” but that have to rely on tax payer bailouts to remain solvent? Do you want your investment dollars financing profiteering that destroys are natural resources while depleting the sustainability of communities? Well, maybe it’s time to consider alternatives…
Private Loans Secured by a Deed of Trust
So, what is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. I am not talking about high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes. I offer very low LTV ratios to my Private Lenders to increase security of the loan. My standard LTV ratios are never higher than 75% of the value of the property securing the loan and frequently much lower at rates of 60% to 70%. These low LTVs mean that there is lots of equity so even if the real estate market declines; the lender’s interests are still protected.
For example, if a property is valued at $100,000, my Private Lender never loans more than $75,000 on the property. This example is a 75% loan-to-value ratio. This is obviously a much safer approach from that taken by conventional lenders. These banks get into trouble because they make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.
You, as a lender, will never lend more than 75% LTV. As a lender, it is in your best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. I don’t violate this rule, because your investment security and my reputation are at stake.
Frequently Asked Question
Who Borrows at High Rates and Why?
Investors like myself, because we have learned in our businesses that it’s not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities.
Our company can acquire good deals in properties because we can act with lightning speed and can close with cash. Private loans give us this competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties.
Additionally, if a real estate investor locates a good deal on a property, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate; so paying a higher interest rate is irrelevant when compared with the risk of losing the deal.
What’s the minimum investment?
The minimum investment is $20,000.
Who handles all of the details?
My company does. It’s my job to get you proper documentation and protect your interest. All of this costs you nothing. The borrower pays all costs. If you make a $100,000 loan, you send a check for $100,000 to the closing attorney and you get a deed of trust and a promissory note for $100,000.
How do I get paid?
My company sets up your account. Just sit back and I will send you a quarterly interest only check for the duration of your investment. If you would like a monthly check, we can do that too! However, for the best returns the majority of our investors prefer to receive a one time, principle plus interest payment after the completion of a project. For accounting reasons, this is a preferred way for my company and because accounting expenses are reduce, I can, in return, pay the lender a higher rate of return.
Is this a long-term investment?
I have long and short-term investment opportunities so you determine the term. Your investment is always tied to a specific project with a timeline designated prior to lending. Most frequently the terms range from 6 to 12 months. But, longer terms of two year or more years are also available. You can pick a term that suits your strategy. It’s your money and it’s your choice.
What if I need to liquidate?
I do not guaranty early liquidation, however, with a 45 day written notice I will do my best to find a replacement lender. You really shouldn’t make Private Loans for real estate if you feel you can't hold for the agreed upon period, but the option is always available contingent upon finding a replacement lender. I have been able to liquidate in as little as two weeks in some scenarios. Also, unlike with a bank CD, there is no penalty for early withdrawal. Just call, and I will handle all of the details.
Is my investment really as secure as it sounds?
Yes! I always follow these conservative guidelines that have been addressed. Your money will grow two, three, or even four times faster than your current investments and you maintain control.
Each property acquisition is put through a rigorous financial evaluation to insure profitability before the property is ever purchased.
Remember that making private deed of trust loans is a business and should be treated like a business. If you set up a simple system and let the professionals implement the system, your loan portfolio can be hassle free and produce staggering yields.
How do I use my IRA’s or pension plan?
Making real estate loans is a widely accepted use for IRA’s and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds, which are already in your IRA’s, and other retirement plans. Think of the power of loaning out funds at high interest rates that are Tax-free or Tax Deferred!
In order for you to use retirement accounts for loans they must first be administered by a third party custodian. There are several third party custodians. You can find links to these on my web page: http://investinmainstreet.net. Or simply talk to me and I’ll share more information and help with the set up process.
After selecting your custodian, you simply send a transfer form to them and they’ll do all of the work for you. Once you’ve done that you are ready to make private mortgage loans.
From there, you simply notify your custodian about the investment you are looking to make and the custodian sends the check to the closing attorney for the gross amount of the loan. Even better, we can do all the work for you and you just sign a few documents, sit back, relax and wait for your money to grow tax free or deferred like grass on a spring morning.
What are my options if Tranquility Homes, LLC doesn’t pay?
Actually, there are several options but first and foremost, please be aware that “Integrity” is an essential part of my business and the company only makes sound investment decisions. One of Tranquility Homes, distinguishing features is that the Company has never been late on a payment to a private lender. The Company simply can NOT afford to be late or to default. If the Company were ever to lose the support of its Lenders it could no longer operate and the Company's investments and complete financial future would be at stake.
However, to answer the question:
1. I could restructure the payment schedule on the note. For example, let’s say I am behind on payments to you. Now I can and would like to keep the house, but I can’t come up with enough money to bring you current in one lump sum. You could let me continue to make regular payments and make an extra payment on our arrearage in addition, or you could simply add the arrearage to the principal balance and extend the term of the loan. This means you would be collecting interest on interest for the entire remainder of the loan. There are always ways to work it out if both sides are willing.
2. Have me deed you the property. This is an opportunity for you to get a piece of real estate at a greatly discounted price. When this happens, you can create tremendous profit by reselling the house.
3. If left with no other choice, you can simply foreclose. Foreclosure isn’t as time consuming and costly a process as most people think.
It’s as simple as sending your note and mortgage to an attorney and saying ‘foreclose’. All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney’s office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys’ fees, court costs, and all other expenses you have incurred in connection with your loan.
If you wind up completely foreclosure that doesn’t mean you have to keep the real estate. It can be sold immediately at a fair sale price and still produce a profit over and above the already high yield on your loan.
I’ve talked extensively about default and maybe provided more information than is necessary, but I want to make sure you have all the facts and your questions are answered.
What kind of documents should I as the lender receive?
Your closing package contains the following:
1. A copy of the Deed of Trust. The original will be recorded.
2. An original Promissory Note.
3. A hazard insurance endorsement naming you as mortgagee.
These documents provide you with the security you need and the return that you desire.
How does private lending strengthen local economies?
When you lend to a private real estate investor 100% of your investment goes to building the local economy. As an example let’s look at a resent project.
Take a look at Photo 1 below. Do you ever see anything like this when driving around your neighborhoods? Most likely all of us have seen many such properties in our communities. Sometimes we find them as our neighbors. If we do have such places for neighbors we know that such properties are driving down the value of our own properties.
Though such properties do not help community property values such places are not valueless. This particular place did provide shelter and a gathering place for the family who lived there. Given their life and financial circumstances at the time it was about the best they could do. Selling to Tranquility Homes, LLC allowed them the freedom to move and gave them the resources to establish themselves in a better environment. Real estate investing done properly is win/win for all involved.
Photo 1: Local Real Estate
Now take a look at Photo 2 below. Do you recognize it? This is a photo of the same house as Photo 1, only it was taken forty-five days later.
Which would you rather have for a neighbor? Which one enhances community property values? These are, of course, rhetorical questions and the answers obvious.
Clearly, the renovation benefits community property values but it brought more value to the community than just elevating property values. This project directly infused capital into the local economy and brought direct economic benefit to local businesses and local families.
Local vendors benefited. ALL materials and supplies came from local vendors. All contractors were local. In total there were eight contractors: General handy man (trash-out/demolition, etc.), carpenter, painter, heating-ventilation-air-conditioning, electrician, plumber, sheet rocker, and landscape/grading.
These eight contractors employed a total of twenty-six individuals. Between the contractors and their employees, thirty-four local families benefited financially from this one project.
Photo 2: Local Real Estate Re-furbished
Obviously community property values increased. This particular property more than doubled in Value. This project was profitable for the real estate investor who did the project and it was profitable for the Private Lender who put up the capital. The project provided a win-win-win for everyone involved.
I do not know of another investment vehicle, other than Private Lending, that not only builds wealth for the investor but also simultaneously strengthens the local economy. Those putting their investment dollars in Wall Street stocks or in Too Big to Fail Banks cannot make the same claim. This project is an example of dollar for dollar secured, hassle free, high yield investing in local economies for the direct benefit of not just the real estate investor and Private Lender but for the benefit of Main Street NOT Wall Street.
How Does Private Lending Build Sustainability?
Some may think that to build a sustainable friendly home that it is better to start from scratch and get it right from the ground up. But, in most cases it takes fewer resources to take what you already have and make it much “greener” and more “eco friendly” than it is to start all over. And, if we don’t improve what is already there who will?
Capitalizing on the energy and materials that have already been invested in a home is more sustainable than starting from scratch because we are not destroying more of the increasingly scare undeveloped land. That bucolic image of an eco-friendly home from scratch comes with a not-so-sustainable price tag: topsoil torn up and compacted, drainage patterns disturbed, plant and animal communities uprooted, vast material and energy resources consumed in construction, new drives, wells, and septic systems.
When revitalizing an existing home the civic investment for the infrastructure is already in place. The power distribution and the water and waste treatment is there without tearing up more of our fragile environment. We spend less on revitalizing an existing home and when revitalizing to lower utility utilization, we revitalize for sustainability.
Investing in an existing home improves the neighborhood and may inspire the neighbors to do the same. Whether by conscious intention or a subtler ripple effect, the sustainability revitalization we make to our homes and landscapes can inform others and encourage them to follow suit. In short, sustainable revitalization is not the poor cousin of the shiny new eco-home. The fact is, sustainable revitalization stands on its own as the wise, resource-conserving, community-building, accessible, enjoyable, and eco-friendly way to improve our communities.
Summary
I hope we’ve enlightened you on the incredible power of making private mortgage loans. If it appeals to you, you can get started right now. While most people are complaining about the low rates they are getting on their CD’s and other low paying investments, you could be receiving a much higher rate of return.
“Are you ready to take action?”
So what’s it going to be? Are you going to continue to let other people control your money so you only get a return that barely keeps up with inflation? Or are you going to take control and make sure that when you get ready to retire, you can do what you want without worry about money.
If you are retired, here is a great opportunity to squeeze every interest dollar out of your savings that you can. Private lending is an incredible way to build wealth in a way that most people aren’t aware exists. You’re not one of those people who are uninformed anymore.
If you have any more questions, please do not hesitate to call at 828-226-0506 or contact via email at allen@allenlomax.com.
Follow my blog at: http://equinesapprentice.com
