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Marketing for Mortgages

Masters Holdings Group utilizes traditional and online marketing to find exceptional homes and mortgages to invest in.  Here is an example of one of our websites

Cash4KeysToday

What is a Private Mortgage Investment?

Private Mortgage Investing goes by several different names depending on the circles that you travel. 

  • Private Mortgage Lending
  • Private Money Lending
  • Private Money Investing
  • Trust Deed Investing
  • Private Lending
  • Private Money

Each may have subtle differences, but basically they are the same.  Private Money refers to lending money by a Private individual or organization.  Traditionally, banks are the primary sources of financing for real estate, but in recent years there has been an increase in private investors stepping because of the above average returns.  There may be higher risks associated with these types of transactions, but if done correctly, the risks are minimized and contained, allowing the investor to reap the rewards.

Investors range from private individuals, trusts and LLCs to pension funds.

Quotes: “More millionaires have created their wealth through real estate than any other endeavor”  by Andrew Carnegie

General Disclosure and Disclaimer

Please carefully consider you investment objectives, risks, costs and associated expenses before investing.  Investing in mortgage or trust deed investments involves some risk, and should only be done by educated investors.  Not every investor is suited to invest in private first or second mortgages.

This blog does not constitute an offer to purchase mortgage investments.  It is meant as an illustrative and educational resource only and is not intended to be legal advice, nor a substitute for obtaining legal advice from competent, independent legal counsel. Masters Holdings Group is NOT engaged in rendering legal, accounting, or other professional services.   If legal or expert assistance is required, the services of a competent professional should be sought. Please be sure to do all necessary due diligence prior to investing and seek professional advice if needed.

An offer is made only through an offering summary and only to those who have requested to receive such summaries.  

If you are interested in obtaining offering summaries, please contact Todd Durand the Managing Partner at Masters Holdings Group, LLC.  He can be reached at tdurand@mastershg.com or by calling 561-512-7873.

Welcome to Private Mortgage Investments

My name is Todd Durand with Masters Holdings Group located in West Palm Beach, Florida.  This blog was created to help educate individuals about the potential of become a private mortgage lender for real estate investment transactions.  I will be publishing short notes, comments and tips for individuals, family trusts and companies that are interested in exploring the opportunties of investing in this secure investment class.  Please subscribe to the newsletter or check back on a regular basis to get more information.  Thanks and Enjoy.  All the Best, Todd

How Does Private Lending Work?

The best place to start is to explain how your bank works because there are many similarities. 

Simplified Bank Business Model

Simplified Bank Business Model

First, how does your bank make money?   Let’s talk through your banks business model. Let’s say you, your family or your company has funds that you want to save or invest – You can do your bank and deposit the funds.  The bank in return gives you a return for your investment.  In our example, let’s use 3% return on our funds because that is about what CDs are currently paying.

The bank can’t just put the money in the vault and forget about it.  They take your money and loan it out to at to another one of their customers at a higher rate - let let 7%.

The bank profits 4% on your money for just acting as a middle man.

People often wonder why real estate investment groups don’t go directly to a bank to get access to funds to buy real estate properties. Real estate investment companies certainly can do that in some situations but there are some drawbacks to working with banks.  Let’s Introduce Private Lending…

Private Lending Cuts out the Middleman (the Bank)

Private Lending Cuts out the Middleman (the Bank)

By cutting out the bank as shown above real estate investment companies are ablve to act quickly when opportunties arise.

Then Banks move slowly – Our sellers need to move quickly. But when our sellers are facing foreclosure, or have already made five extra house payments on a vacant house, they need us to move quickly.

This is a very competitive market – Access to cash allows us to buy quickly and at a discount
Also, when you are in a very competitive market, you need to have quick access to cash to be able to buy houses quickly, or else you lose the best deals to other investors; AND with access to cash, you can offer the seller a lower amount of ALL CASH, as opposed to some cash now and some later – they will take my offer and I get the house if I can pay cash.

Banks will not lend money in certain situations – e.g. No carpet or no air conditioner = No Loan
Banks will not lend money on a house without certain things in the house – something as simple as missing carpet over an unfinished floor, or if there is no furnace – which can be replaced in a rehab – won’t pass muster with the bank’s approval process

In future posts I will explain the more benefits to both the investor and the real estate company.

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Dansette