FAQ

Answered Elsewhere

Many questions you might have are already answered on other pages:

• Thumbnail Summary gives the overview.
• About Us describes the company putting this together.
• Example Loans shows the numbers on some sample loans.
• Note-on-Note Financing compares note-on-note financing with note buying. We offer both.
• Who’s Involved explains the roles of the 4 parties in the transaction.
• How It Works gives more details of what’s already happened and what you’ll get.
• The properties shows how we screen the collateral behind these loans.
• Documentation shows the documentation you’ll see before investing. Some of it is already recorded as public record.
• What’s Different shows where these loans differ from most common home loans.
• The Closing shows what happens before, at, and after the closing.
• Privacy shows how we handle your data.

What interest rate do you pay?

The range is 12-18%. After reviewing each deal, tell us what you need from it. There’s enough in each deal for everybody to do well.

We’re building a select team of qualified investors who’ll regularly take these deals. We only need a few good ones. We’re not looking to create bidding wars and waste our investors’ time on deals they’ll never get. That’d waste a lot of our time, too.

How do you define qualified investors?

Qualified investors = principals who’ll close.

How can I demonstrate that I’m a qualified investor?

That’s easy. If you’ve closed on mortgages or investment properties, you’re already in the public records.

How does the payment and payday connection work?

Most mortgage loans have monthly payments on the same date of the month, typically on the first. We could do some payment plans this way, but, more often, we structure our payments to automatically come out of the borrowers’ bank accounts the same day their automatic income payments are deposited. These schedules could be weekly, bi-weekly, semi-monthly, or, for borrowers receiving Social Security payments, tied to those payment schedules, e.g., the third Wednesday of every month. Interest is calculated daily.

When each loan payment is made, the trustees also receive a pro-rated deposit for the property taxes. This payment plan makes it easier for borrowers to always be current with their house payments and property taxes.

What happens if a borrower doesn’t pay?

First of all, you’ll earn a late charge if a payment is even one day late. Because the payments are set up to be automatic and electronic, any missed payment takes human attention, which justifies an immediate late charge. Late charges are usually $25-40, the same as statutory bounced check fees, which the law has already determined to be reasonable.

You can notify us, but, most likely, we’ll already be working to bring the borrower into compliance. If that fails, we’re ultimately responsible for all the payments to you. If we need to, we’ll foreclose or, more likely, make a cash for keys deal. You won’t have to handle any of that.

What happens if there’s major property damage?

The loan payments are still due. If the borrower falls behind, see the answer to the previous question.