What My Risk?

Does the Private Secured Lender Investor Program have risk?

Yes, all investments have some degree of risk. Even money markets, certificate of deposits, and government bonds have inflation and re-investment risk. Traditionally
those investments don’t even keep up with inflation.

Just like your local banker, you will be loaning money to individuals for the purchase of a home. Yes there is repayment risk with every mortgage. However the safety is in the property as collateral. Obviously there is some risk in real estate investing but we feel the risk/reward ratio is in the favor of the Private Secured Lender. Most investors come to us because they are looking to diversify their long term portfolio and want to increase their income stream without taking undo risk.

What could go wrong?

Loan to homeowner - The borrower could run into financial difficulties and stop making the mortgage payments. At some point you may choose to do what the banks do, and foreclose on the borrower. These loans are made with 5-30% down payment so the value of the property should easily sell for more than what is owned. If for some reason you can’t seem to get the price you want for the house you may want to rent it for a while.

Loan to TLH - Remember because we buy homes at wholesale at 50-80 cents on the dollar the value is worth far more than our loan from you.

How will know if I’m loaning too much for the value of the house?

Loan to homeowner - A valid appraisal will be done by an appraiser of your choosing.
In it you will see comparable sales within the area. You will also get the full array of legal documents including proposed use of the funds, survey, title insurance, termite inspection, and proof of homeowners insurance.

Loan to TLH - A valid appraisal will be done by an appraiser. In it you will see comparable sales within the area. You will also get the full array of legal documents including proposed use of the funds, survey, title insurance, termite inspection, and proof of homeowners insurance.

What if the house burns down or hurricane hits it?

Loan to homeowner - Homeowner must have homeowners insurance at all times.

Loan to TLH - TLH must have homeowners insurance at all times.

If you have any additional questions Click Here or call Darrell Jones at 407-862-2778 (office) or 407-509-0121 (cell).