Private Lending

Dear Friend,

If the answer is no, and I’m sure it is, please pay very special attention because the following information could make you thousands of dollars in the coming years simply by increasing the yield on the same money you’re investing now.

I am a professional and qualified Real Estate Investor and I’d like to spend the next few minutes talking to you about a way you can control your investments and safely make them grow at three to five times your current rate. Yes, I know it sounds too good to be true, but it isn’t. What I’m going to share with you is very common in real estate circles and has been going on right under your nose in every city in America.

Smart people have been utilizing this investment for years. In fact ……….

This is a very safe investment that produces high yields while at the same time provides security and liquidity.

Do you know what $25,000 is worth in five years compounded at a 3% yield? It’s worth $29,040. But now let’s take that same $25,000 and invest it for the same five years at 12% simple interest instead of 3% compounded. Now it’s grown to an amazing $40,000! That’s a $10,960.00 Difference - Simply by Upping the Yield from 3% to 12% ……

If you expand it to a ten year term, your $25,000 would be worth $33,734. at 3% but if you change the yield to 12%, it grows to an incredible $55,000. That’s $22,266.00 free dollars you will actually receive. Can you really afford not to control your own investments? Does it make sense for a bank to run your investments for you? They would like for you to believe it does.

Well, there is an alternative for you to consider. That alternative is……

We do because we have learned that…

• It makes it possible to acquire good deals in houses because the funds are available quickly from private lenders that would not be available quickly from banks.

• A Real Estate Investor that is good at locating good deals on houses, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing him for being an astute Real Estate Investor. Having the money available will make or break the deal, and paying a higher interest rate is irrelevant compared to…..

Let’s clarify what kind of loan a private mortgage loan is. It is a loan that you make to a Real Estate Investor and in turn your loan is secured by the actual property that the Real Estate Investor purchases. That gives you security. I’m not talking about high loan-to-value loans the banks and savings and loans make on homes. We deal with very low loan-to-value (LTV) loans. By that, I mean no higher than 50 or 70% of the value of the property securing the loan. Our typical LTV is 60% to 68%. That gives you additional security. This means if a house appraises for $60,000, we could buy it for $42,000. That’s a 70% loan-to-value. It’s obvious why this is a much safer approach than most lending institutions take. The banks make loans at 90%, or even 100% loan-to-value ratio. Banks just don’t have any cushion.

You, as a lender, won’t lend more than 50% to 70% LTV regardless. You’re making a safe loan. You should never make a loan without a 30-50% safety net. You come out a winner.

No!

• Our Minimum Loan Amount is $5,000.00
  Smaller amounts of money are usually used in situations where we
  buy a "Pretty House", and take over payments of the seller’s mortgage.
  Maybe give the seller a little money for their equity, and for cosmetic repairs.
• Small Amounts of Money may be Secured by a 2^nd Mortgage.
• Larger Amounts of Money are Used for Acquisition and Remodeling
  Which could be
• As little as 25 to $30K or over a $100K.
  It just depends on the value of the real estate investment opportunity
  that is presented. I’m working on a hotel deal right that if I had 900K cash
  it would be a done deal. It’s what used to be the old Ramada Inn in
  Portage off I-80/94. That property is worth 4.5M fully up and running.

• We do. It’s our job to prepare the documentation. We deliver the papers to you
  prior to closing for signature. So you do not need to take time out of your life to
  attend a closing.
• We pay all closing cost. If you make a $25,000 loan, you send a check for
  $25,000 to the closing agent and you get a mortgage for $25,000, or we are willing
   to secure your interest by giving you ownership. Whatever it takes to make you comfortable.
• It is our objective to make this process as easy as possible for you.

• 12% - while you sit back and let your interest accrue until the house sells or I
  refinance. You will be sent a check, or it will be wired into your account, for
  your principal and accrued interest.
• 10% - If you prefer a quarterly or monthly check.
  

It can be any term you want. It depends on the real estate investment opportunity.
It could be 6 months or less, one year, or a five-year term. You can pick a term that
suits your strategy for retirement. It’s your money and it’s your choice.

• You’re the boss.
• Usually 3 to 12 months, average 6 months.
• 30 days or less, when we are wholesaling. Which is when we buy a property
  and then turn immediately around sell it to someone else for a higher price
  than what we paid.
• We can do longer term if you prefer
  We’ll talk to you individually about your specific needs.

Your Money, Your Choice!

Life happens and people’s circumstances sometimes change.
If you need to liquidate your loan it takes less than:

• About 4 weeks. We can liquidate your loan by replacing your money with
  another Private Lenders Money.
• No early withdrawal fee. You still get the 12% interest as agreed.
• Just call and we will handle all of the details.
• If you want out, it will take from two weeks to one month. You really shouldn’t
  make mortgage loans if you feel you will liquidate shortly, but the option is
  always available.

Yes! We follow these common sense guidelines that we’ve talked about.

Your money will grow two, three, or even four times faster than your current investments
and you maintain control.

Remember that making 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. Also remember, all costs
are to be paid by the borrower…. not you!

Investing vs. Speculation
We view investing as putting money into something with solid security, that
that will produce high returns based on solid facts. Real Estate provides this,
and people are always going to need a place to live.
Speculation is when you invest money into something with weak or no real
security, with just the hope of a high return.

• Sent to you as a Lending Opportunity
  This Prospectus describes the lending opportunity available
  to you. You look it over and decide if it is for you. Included
  in the package is:
• Cover Letter
• Description of Subject Property
• Our Projected Timeline
• BPO (Brokers Price Opinion)
  This is a report comparing what similar properties have sold for, to
  arrive at a reasonable value for the subject property. Very similar to
  what an appraiser does.

Making real estate loans is a widely accepted use for IRA’s and Pension Plans. Think of it, now you cannot only loan out money that has been unavailable for you to use, but you can make it grow rapidly…. Tax Deferred!

Since Uncle Sam isn’t taking a bite out of your profits until you draw out the money, more money is left in the account to compound and grow. The results are staggering…

In order for you to use retirement accounts for loans they must first be administered by a "Third Party Administrator" or TPA. This TPA is set up and approved to administer your loan activities. This means you will probably have to transfer your plan to one of these TPA’s, unless of course, your present administrator is set up to do that.

Not all IRA Administrators are set up to allow you to self direct your IRA money. It is more paperwork and processing time on their part. So you can move your IRA to a company who is set up to allow you to self direct where your IRA money is invested.

When your TPA is located, simply send the transfer form to them and they’ll do all of the work for you. Once you’ve done that…..

If you have any questions regarding your plan or its administration, contact your Plan Administrator. If you need help transferring your IRA just give me a call. I’ve located the best in the country and I have all their forms in stock, so you can get going immediately.

First and foremost, please be aware that "Integrity" has meaning for us and we do what we promise.

What could be the down side?

1. You get the property and the additional 30% plus equity.
2. You get the profit we were going to make.
3. Has never happened. It is our incentive, to not let it happen!

If you wind up with the home, that doesn’t mean you have to keep it. It can be sold immediately at a fair sale price and still produce a profit over and above your already high yield on your loan.

In my 22 years of business we have never been late on a payment to a private lender. I can provide you references to back that statement up.

What kind of documents should I receive?

Your closing package should contain the following:

1. An original Promissory Note.
2. A copy of the mortgage. The original will be recorded and then sent to you.
3. Copy of the Deed to you. Original to be held in escrow.
4. Title Insurance
5. A fire insurance endorsement naming you as mortgagee.

These documents provide you security.

Well, we’ve covered a lot in the short time we’ve had together. I hope I’ve enlightened you on the awesome 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 return of 12% all of the time…..

You now know how the program works and how you can start earning 12%

today.

You have 3 options:

• If this is not for you. Do you know anyone that this would suit?

• Set up a one-on-one meeting to discuss more details.

Private lending is an incredible way to build wealth passively and quickly; that most people aren’t aware exists. You’re not one of those people who are uninformed anymore. If you have more questions give me a call.

Sincerely,

Allen Watkins

219-979-4607