Investor News 8/13/2018
BIG LOAN, BIG PROFIT: we are posting a loan on the website that is for $2.5M that will be extremely profitable for the investors. We have a number of ways to structure it, but the ROI will be approximately 30% to the investors: 10% preferred return and 20% split of profit upon sale of property – profit of approximately $10M. It will need to close in the next 7 days, and I STRONGLY urge you to form an LLC with your fellow investors (we will help, and Geraci Law Firm is the attorney for the deal and they can assist in structuring the deal), so that we do not have to go through the signature collection every time the borrower is recording a map. More details on the site.
CHAT: Our chat is finally working right. When you click on the chat button on the lower right hand corner, one of our staff who are approved to handle investor inquiries will pick up – just like a phone call. Please use the chat!! You will get helped much faster this way!
SUPPORT TICKET: For a more complicated problem, go to investtrustdeeds.com and click on Support Request and fill out the form. This will generate a ticket in our system and the support ticket will be routed to only those staff who have the “investor” level of skill (Corinne, Matt, Troy, Marsix, Sherry).
OTHER CHANGES: We are pretty excited that land development and construction loans are back in full force, and we are getting a large share of these. The reason we are happy about this is A) it is business purpose – no Dodd-Frank; B) returns can be much higher than they can for owner occupied; C) it means that there is growth and new residential being built and for the next 10 years we still need more residential units as there is a huge shortage. After the baby boomers go into assisted living, I don’t know what the absorption rate will be, but for now, we need units.
We are licensed in Texas and we are starting to get a number of calls where the house value is approximately $100k and the loan amounts are approximately $50k-$60k. For those of you who love those types of deals, we’ll have a lot of them soon, but remember, under no circumstances ever, can the interest rate exceed 6.5% over the APOR rate on an owner occupied loan. That number is currently 11%. That is the MAX we can charge on owner occ properties unless you want to give a 30 year mortgage.