There are several reasons: ​ With experience, we’ve learned in real estate that it’s not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities. A good deal can go quickly and those investors who act fast can capitalize on the best deals and get the best profits. The key to this is to have access to funds quickly. ​ Private loans give the investor a competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties. We typically can turn around funding in a few days while banks can take months. Sure, investors can go to a bank and borrow at lower rates; however, these transactions are time sensitive and by the time a bank approves a loan, the property will have an accepted offer. It is our ability to close on deals fast with cash that sets us out ahead of the competition and enables us to lock in the best possible purchase prices.

It really depends. First and foremost, we are targeting accredited investors. https://www.investopedia.com/terms/a/accreditedinvestor.asp ​ Each private loan that we offer is based on the particular project and our exit strategy with the property. Some properties we acquire and hold for the long-term. For these types of properties we may offer longer term loans at higher dollar amounts ($100,000 +). Typically, however, our minimum investment is $50,000. If you have a lower number in mind so you can experience our program at a lower initial investment, contact us to see if there’s a fit for us to work together.

Contact us! We handle all of the details for you. All you have to do is let us know how much you would like to invest and we’ll get you the proper paperwork to get the ball rolling and to protect your interest in the private loan. All of this costs you nothing. The borrower pays all costs.

If you want out, to be fair for all parties, a 60 day written notice is required because we will need to replace your funds with another investor’s funds. Truly, you really shouldn’t make private mortgage loans if you feel you will need the funds liquid in a short time frame, but the option is always available. Because of the costs associated with replacing your funds with another lender’s, a penalty of half of your accrued interest is assessed. Just call us, and we will handle all of the details.

When done with reputable and experienced investors like Anthony and Teresa Machi and Milwaukee Real Estate Solutions, being a private lender on low Loan-to-Value property is extremely consistent and predictable. We always follow these common sense guidelines. We view each private loan that we take on as a partnership. Therefore, we evaluate the loan as if we were to buy the property to ensure it makes sense for everyone. 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.

There are several options available. First and foremost, please be aware that integrity and honesty are essential to our business and we only make sound investment decisions. If we produce even one negative result for an investor, that could affect our entire business in a negative manner. So, we operate our business in a way that we ensure our investors are taken care of each step of the way. If necessary, options include: 1. We could restructure the payout schedule on the note from the borrower. For example, instead of a 6 month duration we could extend it to 8 months as long as they continue to keep paying interest. In turn, there is more of a return for our investors. It's truly a win/win. 2. Place the signed deed in escrow and deed you the house. Our company would deed you the house, after which you are the owner of the property that we were able to purchase at a steep discount. You can then hold onto the property if you wish or turn around and sell the property to liquidate the asset. Because our investors typically loan 65% Loan-to-Value, the investor would take ownership of the property at a heavily discounted price should this situation occur. 3. As a last resort, you can simply foreclose. Because we pride ourselves in treating our investors fairly, we prefer not to let a situation get to this point. We would rather simply deed you the property than force you to foreclosure. Should foreclosure be the only option we will make it as painless as possible. If 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. In the event you wind up with the house, that doesn’t mean you have to keep it. It can be sold immediately at a fair market price and still produce a profit above and beyond the already high yield on your loan.