 
Why Should
I Choose to Finance Projects Through The Equity Experts?
Although we help to fund projects on a national, and even international, basis,
we consider ourselves a boutique agency with a business model designed to protect
our investors. Much more personable and accessible than huge investment firms
or real estate money mills, we work hard to know each investor's personal investing
preferences. You don't like to invest in commercial properties - no problem.
If you prefer loans with a maximum term of 12 months, no problem. Want to invest
only in downtown Albuquerque, Chicago, Orlando? OK, that's where we'll put
you. We only present you with projects that fit your personalized investing
profile.
In addition to helping you to find strong, qualified real estate investment
opportunities, we also work with you through the entire process of the transaction;
from due diligence to servicing the loan through payoff. Our goal is to service
you, our investor client, with as little stress to you as possible.
Our two investment programs are extremely successful .
Please take a few moments to read through what we offer,
and then if you want more information, you can contact
us or read more in our investor training area.
Investing Option
1: Private Mortgage/Trust Deed Investing:
EARN
14% PER ANNUM – FIXED
WITH MONTHLY PAYMENTS
$50,000 Minimum investment
Unlike traditional
investing, private mortgage/trust deed investing is the
process by which an investor lends money against a piece
of property and holds a mortgage or deed of trust lien
against that property, much like a bank or mortgage lender.
Pros:
• An investment secured by a Real asset instead of a constantly fluctuating
corporate asset.
• Investment is secured by high-equity oriented real estate
• Monthly returns in the form of payments from the borrower.
• No management or transaction fees
• Strong, fixed-rate returns for determinable and pre-stated periods of
time.
• Investor chooses where their money goes based on investment opportunity
presentations.
• Investor can earn additional income through occasional late payment fees
• Even in poor markets, real estate continues to appreciate at 7.25% per
annum on avg.
Cons:
• Cash remains in investment until end of term (typically 3-60 mos.)*
• Borrower can default resulting in foreclosure of property
• Foreclosure may cost the investor until property is sold or acquired
by investor.
Typical Loan-to-Value ratios for Real Assets acting as Investment Security:
(Loan to value or LTV is the maximum amount we will loan against a property's
verifiable value or purchase value, whichever is less.)
Commercial: 65%
RawLand: 50%
Construction: 65%
Development: 50-65%
Income-Producing Commercial: 70%
Residential Investment 70%
How it works:
After thorough due-diligence on a loan request and the borrower, we submit
a summary of the loan and the borrower to you for your acceptance. If you find
the loan opportunity to be practical and attractive, you will confirm your
desire to fund the loan for the given term and at the interest rate in the
summary. Our team then sets up an escrow through a third-party firm, completes
all legal paperwork, helps with the final signing and then services the loan
free of charge to our investors. Your funds will be written directly to the
escrow company, and your name will be on the deed of trust or private mortgage
set up as a promissory note with the borrower's property as security and then
recorded through the local county recorders office. Payments will then be made
to you on a monthly basis through a collection account managed by a company
who specializes in managing escrow and mortgage payments.
All fees are paid by the borrower, so the transaction doesn't cost you anything.
Likewise, all servicing and management fees are also paid by the borrower so
again, you don't pay anything - not even a yearly management fee!
*In the event an investor must liquidate
an investment, The Equity Experts will attempt
to replace the investor's position in the loan
with a new investor. The only cost for this service
is the necessary fees incurred in the escrow
and refiling process.
Investing Option 2:
Joint Venture Program
EARN
20% PER ANNUM – WITH MONTHLY
PAYMENTS
$250,000 Minimum investment
Unlike our previous investment program,
the joint venture investment option is perhaps one of the
most variable of options, with a safe, high-yield opportunity
for earning.
In the case of a JV transaction, Investor offers funding
for a return of principal, a small interest payment and
an ownership stake in a real estate property or development.
Although the terms on such transactions will vary according
to the details of each opportunity, we typically attempt
to arrange the following terms :
This is an illustration only, and cannot be construed
as an absolute model for every JV investment:
Project: Housing development (55+), 720 units
Project End Value (projected): $210,000,000
Projected End Value Net Profit: $ 60,000,000
Investment Requested: $ 10,000,000
Interest on principal: 10% per annum ($83,333.33/month
interest payment)
Term of principal repayment: 4 years
Buildout schedule: 10 yrs.
JV Ownership return (Years 5-10): $666,666.67 per year
($55,555.56/month JV payoff)
Total Return:
$10,000,000 Principal (paid off in year 4), plus
$ 4,000,000 Interest (4 years), plus
$ 4,000,000 JV return ($666,666.67/year for 6 additional
years –or- a $4,000,000 buyout of contract- if funds
are available-in year 5)
Pros:
• High returns on investment
• Real Estate securing funds
• Only qualified borrower/partners considered to be an investment
opportunity
• Principal returned in addition to investment proceeds
• Outside management/consulting oversight enlisted to help
protect investment
• Funds are managed by third party financial firm Cons:
• Market variability
• Longer term payouts of investment return
• Net profit/returns based on projections
• Money tied up in project
Want to learn more about The Equity Experts and
how we protect our investors? Click the “Teach Me More” button
Below.
|
|
