Keep in mind our main business is residential & commercial loans to credit worthy individuals. If they can’t qualify for a conventional loan then we offer them a private mortgage. It just gives them another option. About 80% of our loans are referred to us by other mortgage brokers who can’t place the loan with a traditional lender. We love bank turndowns. We can close our loans in 7-10 days so that is the main reason someone would be willing to accept a higher rate on their mortgage. However, … [Read more...] about WHY WOULD SOMEONE WANT TO BORROWER MONEY AT HIGHER INTEREST RATES THEY MOST BANK OFFER?
Most terms for the majority of our private mortgages we originate are 6 to 12 months and are interest only payments with a balloon payment due at the end of the agreed term of the loan. However, most of the time they are paid off early, we probably average 4 to 9 months as most borrowers either refinance or sell the property. … [Read more...] about WHAT ARE THE TYPICAL TERMS OF THE MORTGAGE?
Most residential mortgages that we fund are between $50,000 & $250,000 and the majority of the commercial loans are above $100,000. … [Read more...] about WHAT IS THE TYPICAL DOLLAR AMOUNT OF A PRIVATE MORTGAGE INVESTMENT?
It’s always prudent for one to have a diversified portfolio. Private mortgage investments should appeal to anyone that wants the safety and security of an investment secured by a first mortgage position on real estate with a safe LTV and likes monthly income. It’s great for IRA’s, as there’s no income taxes to worry about. … [Read more...] about WHAT TYPE OF INVESTORS DO PRIVATE MORTGAGES APPEAL TO?
Yes and in fact this is a great way to get started investing in mortgage notes as you can invest what you feel comfortable with. Not everyone has the funds to invest the entire amount of the note for themselves as many of our mortgage notes are well over $100,000.00. With our participation agreements you have the option to invest what you want. … [Read more...] about DO YOU OFFER MORTGAGE POOLS THAT INVESTORS CAN PARTICIPATE IN?
Unlike stocks or bonds, where all you have to do is call up your stock broker and place a sell order and get your money in 5 to 7-days, real estate is not that liquid. You give up some liquidity for the safety of an investment secured by real estate. However, if an investor needs to cash in their investment early we are generally able to find a new investor within 30 to 45 days. In the event of a default and the investor gets the property back through foreclosure Brass Financial Group reserves … [Read more...] about HOW LIQUID ARE PRIVATE MORTGAGE INVESTMENTS?