- REAL WEALTH SHOW!
- EVENTS
Listen to the Real Wealth Show!
HOT TALK 560 KSFO
Sun. 11:00 AM - 12:00 PM PT
HOT TALK 560 KSFO
Sun. 11:00 AM - 12:00 PM PT
.jpg)
LIVE EVENTS
Taking a break until 2009!
Happy Thanksgiving and
Merry Christmas!
TELESEMINARS
No-Money Down and Cash-flow in Indianapolis, IN
November 24th (Monday)– 6:00-7:00 PM PST
PRIVATE MONEY LENDING
EARNING SAFE 12% RETURNS ON YOUR HARD EARNED MONEY
We are very excited to introduce you to an opportunity that gives you greater control over your investments and watch them grow at two to five times your current rate. It may sound too good to be true, but the truth is, many private lenders just like you are currently enjoying these high rates of return. They know how volatile the stock market can be, and prefer investing their money where they can get a higher rate of return with a higher level of security and liquidity.
Private Loans Secured by a Mortgage
What is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property and secures their investment.
We offer very low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment.
For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That’s a 75% loan-to-value ratio. This is a much safer approach from that taken by conventional lenders who make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.
Who Borrows at High Rates and Why?
Investors like us do, because we have learned in our business that it’s not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities.
Our company can acquire good deals in properties because we can act with lightning speed and can close with cash. Private loans give us this competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties.
Additionally, if a real estate investor locates a good deal on a property, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate, so paying a higher interest rate is irrelevant when compared with the risk of losing the deal.
What’s the minimum investment?
$50,000, however, you can team up with other investors to form an LLC if you have less than $50,000 to invest.
Who handles all of the details?
We will. It’s our job to get you proper documentation and protect your interest. All of this costs you nothing. The borrower pays all costs. If you make a $100,000 loan, you send a check for $100,000 to the closing attorney and you get a mortgage for $100,000. We will pay 6 months of interest upfront.
Is this a long-term investment?
Generally, your investment is tied to a specific project with a timeline ranging from 3 to 12 months. We have lending programs for short term holds of three to six months. We also have longer term holds of one year and longer. You can pick a term that suits your strategy. It’s your money and it’s your choice.
Is my investment really as safe as it sounds?
Yes! We always 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.
Each one of our properties that we acquire is put through a rigorous financial evaluation in order to evaluate the profitability before the property is ever purchased. Worst-case scenario, you end up with a cash-flow property with 25% equity. But since that may not be your objective, we have methods in place to remove the borrower from title instead of having to foreclose. We also have a wait list for the properties so we can replace the borrower with a new buyer. If we can’t find a new buyer, RWN Assets will buy it. This is our guarantee.
How do I use my IRA’s or pension plan?
Making real estate loans is a widely accepted use for IRA’s and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds which are already in your IRA’s and other retirement plans . Think of the power of loaning out funds at high interest rates that are Tax free or Tax Deferred!
In order for you to use retirement accounts for loans they must first be administered by a third party custodian. One custodian we commonly work with is Equity Trust Company. You can visit them on the web at www.trustetc.com or simply talk to us and we’ll help you with the set up of your account.
After selecting your custodian, you simply send a transfer form to them and they’ll do all of the work for you. Once you’ve done that you are ready to make private mortgage loans.
From there, you simply notify your custodian about the investment you are looking to make and send the check for the gross amount of the loan. Even better, we can do all the work for you and you just sign few documents, sit back, relax and wait for your money to grow tax free or deferred.
12% Return on Your Money
Our hard money lenders will be paid 12% on the money they lend. The first six months of interest will be paid to the lender upfront. The full principal will be paid back when the end buyer finances the property after the renovation is complete – which generally takes less than 6 months and in some cases as quickly as 6 weeks.
This is what you can expect to receive:
1.Proposal
You will receive a proposal for the amount of money requested, including
purchase price, wholesale fees, repair costs, holding costs, taxes, utilities, and insurance.
2. Comparative Market Analysis (CMA)
You will receive a comparison of subject property with those sold (not pending or for sale) in the last 6 months based on the legal description: parcels developed in the same time period, comparable building materials, as nearby as possible. The lender can also order an after-repair value appraisal upon request.
3. Rehab Estimate
You will receive a very detailed comprehensive estimate of rehab costs from a licensed, insured and bonded contractor, with a warranty on all work completed.
5. Free & Clear Title
The Title Company does a title search to ensure property is free and clear. You will receive the chain of title.
4. Loan Documents
You will receive the borrower’s loan approval for his or her refinance to ensure that an end loan is in place. You will also receive loan documents detailing the terms of your loan, signed by the borrower. The borrower also signs a special limited Power of Attorney and Quit Claim deed in the rare event that he or she can no longer fulfill the end loan. These documents are held by the Title Company with instructions to remove the borrower from title in the event that he or she cannot refinance out of the hard money loan.
5. Funding & Recording
Once you accept the aforementioned documents, the Title Company will receive the instructions - including a copy of the closing package, the recorded Mortgage and Note, Power of Attorney and Quit Claim Deed. You will receive a HUD1 from the Title Company with a request for funds. You send the requested amount via certified check or wire to the Title Company. Once those funds are received, the Title Company files the Promissory Note and Mortgage with the Recorder’s Office in first lien position.
6. Exit Strategy
Once the property is fully renovated and rented (approximately 3-6 months), the borrower will refinance out of your private money loan into a conventional loan. If for any reason, the borrower is unable to refinance, RWN Assets will instruct the Title Company to proceed with the Quit Claim Deed and remove the borrower from title. You have the choice to either keep the property or have Real Wealth Network offerl it to another investor. (There is currently a wait list.)
If you would like further information, please contact Joan Leavitt at JoanL@RealWealthNetwork.com
EARNING SAFE 12% RETURNS ON YOUR HARD EARNED MONEY
We are very excited to introduce you to an opportunity that gives you greater control over your investments and watch them grow at two to five times your current rate. It may sound too good to be true, but the truth is, many private lenders just like you are currently enjoying these high rates of return. They know how volatile the stock market can be, and prefer investing their money where they can get a higher rate of return with a higher level of security and liquidity.
Private Loans Secured by a Mortgage
What is a Private Loan? It is a loan made to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property and secures their investment.
We offer very low LTV ratios to our Private Lenders to increase security of the loan. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment.
For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That’s a 75% loan-to-value ratio. This is a much safer approach from that taken by conventional lenders who make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.
Who Borrows at High Rates and Why?
Investors like us do, because we have learned in our business that it’s not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities.
Our company can acquire good deals in properties because we can act with lightning speed and can close with cash. Private loans give us this competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties.
Additionally, if a real estate investor locates a good deal on a property, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate, so paying a higher interest rate is irrelevant when compared with the risk of losing the deal.
What’s the minimum investment?
$50,000, however, you can team up with other investors to form an LLC if you have less than $50,000 to invest.
Who handles all of the details?
We will. It’s our job to get you proper documentation and protect your interest. All of this costs you nothing. The borrower pays all costs. If you make a $100,000 loan, you send a check for $100,000 to the closing attorney and you get a mortgage for $100,000. We will pay 6 months of interest upfront.
Is this a long-term investment?
Generally, your investment is tied to a specific project with a timeline ranging from 3 to 12 months. We have lending programs for short term holds of three to six months. We also have longer term holds of one year and longer. You can pick a term that suits your strategy. It’s your money and it’s your choice.
Is my investment really as safe as it sounds?
Yes! We always 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.
Each one of our properties that we acquire is put through a rigorous financial evaluation in order to evaluate the profitability before the property is ever purchased. Worst-case scenario, you end up with a cash-flow property with 25% equity. But since that may not be your objective, we have methods in place to remove the borrower from title instead of having to foreclose. We also have a wait list for the properties so we can replace the borrower with a new buyer. If we can’t find a new buyer, RWN Assets will buy it. This is our guarantee.
How do I use my IRA’s or pension plan?
Making real estate loans is a widely accepted use for IRA’s and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds which are already in your IRA’s and other retirement plans . Think of the power of loaning out funds at high interest rates that are Tax free or Tax Deferred!
In order for you to use retirement accounts for loans they must first be administered by a third party custodian. One custodian we commonly work with is Equity Trust Company. You can visit them on the web at www.trustetc.com or simply talk to us and we’ll help you with the set up of your account.
After selecting your custodian, you simply send a transfer form to them and they’ll do all of the work for you. Once you’ve done that you are ready to make private mortgage loans.
From there, you simply notify your custodian about the investment you are looking to make and send the check for the gross amount of the loan. Even better, we can do all the work for you and you just sign few documents, sit back, relax and wait for your money to grow tax free or deferred.
12% Return on Your Money
Our hard money lenders will be paid 12% on the money they lend. The first six months of interest will be paid to the lender upfront. The full principal will be paid back when the end buyer finances the property after the renovation is complete – which generally takes less than 6 months and in some cases as quickly as 6 weeks.
This is what you can expect to receive:
1.Proposal
You will receive a proposal for the amount of money requested, including
purchase price, wholesale fees, repair costs, holding costs, taxes, utilities, and insurance.
2. Comparative Market Analysis (CMA)
You will receive a comparison of subject property with those sold (not pending or for sale) in the last 6 months based on the legal description: parcels developed in the same time period, comparable building materials, as nearby as possible. The lender can also order an after-repair value appraisal upon request.
3. Rehab Estimate
You will receive a very detailed comprehensive estimate of rehab costs from a licensed, insured and bonded contractor, with a warranty on all work completed.
5. Free & Clear Title
The Title Company does a title search to ensure property is free and clear. You will receive the chain of title.
4. Loan Documents
You will receive the borrower’s loan approval for his or her refinance to ensure that an end loan is in place. You will also receive loan documents detailing the terms of your loan, signed by the borrower. The borrower also signs a special limited Power of Attorney and Quit Claim deed in the rare event that he or she can no longer fulfill the end loan. These documents are held by the Title Company with instructions to remove the borrower from title in the event that he or she cannot refinance out of the hard money loan.
5. Funding & Recording
Once you accept the aforementioned documents, the Title Company will receive the instructions - including a copy of the closing package, the recorded Mortgage and Note, Power of Attorney and Quit Claim Deed. You will receive a HUD1 from the Title Company with a request for funds. You send the requested amount via certified check or wire to the Title Company. Once those funds are received, the Title Company files the Promissory Note and Mortgage with the Recorder’s Office in first lien position.
6. Exit Strategy
Once the property is fully renovated and rented (approximately 3-6 months), the borrower will refinance out of your private money loan into a conventional loan. If for any reason, the borrower is unable to refinance, RWN Assets will instruct the Title Company to proceed with the Quit Claim Deed and remove the borrower from title. You have the choice to either keep the property or have Real Wealth Network offerl it to another investor. (There is currently a wait list.)
If you would like further information, please contact Joan Leavitt at JoanL@RealWealthNetwork.com
We do not sell your information