Private Lender Frequently Asked Questions

Below are answers to the most frequently asked questions regarding our private lender program. If you have a question that is not answered, please e-mail us at customercare@therealestatedealer.com for a prompt response.

Question: What if the investor does not stay current with their mortgage payments?

Answer: If the investor does not stay current with their mortgage payment, then you as the holder of the mortgage will be able to foreclose on the property. We only deal with property that have a substantial amount of equity so recouping your funds should not be a problem.

Question: How do I know I can trust you?

Answer: Have you ever purchased a mutual fund? Many times you are given vague information on the mutual fund. We are not going to have you take such a leap of faith. We will give you detailed information about the property such as the property's value, comparative sales data, pictures of the property, and the proposed use of the funds. We will not ask you to make a decision without providing the information.

Question: What is the process for doing a private lender transaction?

Answer: The process is very simple. The first thing we do is find our property that meets our investment objectives. The next step is to secure a mortgage on the property. The purchase is then closed via a closing conducted by a title company and/or an attorney. The mortgage is given to you. We then make payments to you.

Question: What documents secure your investment?

Answer: We secure your investment with an appraisal or comparable sale report, title report, promissory note, and hazard insurance.

Question: Can I use the funds in a 401(k) or IRA to invest?

Answer: Yes you may. There are regulations governed by the IRS that require a third party to act as a custodian to take advantage of tax-free and/or tax-deferred gains. Also, you would want to set up a self-directed account. For more information, go to Equity Trust Company's we site at www.trustetc.com.

Question: How much do I need to invest?

Answer: The minimum needed to invest in our program is $5,000. However, you may invest more to receive a higher return on your money.

Question: Do you pool these investments?

Answer: No we don't. Each investor gets their own note and mortgage. Your funds will be kept seprate from other investors.

Questions: How long will my money be tied up?

Answer: The term of the mortgage is up to you. You may request to have your money invested from one to over ten years.

Question: Will I be a landlord?

Answer: No. When you invest in a private mortgage, you are acting like a bank. Banks do not field calls from tenants. Banks do not mow lawns. Bank do not fix leaky faucets.

Question: Do I have to collect payments?

Answer: No. Payments will be made to you our your IRA account.

Question: Can I invest for my child's college education?

Answer: Yes you may. Please go to Equity Trsu Company's web site at www.trustetc.com for more information on self-directed Coverdell Education Savings Accounts.

Question: Can I do more than one deal at a time or am I limited to one?

Answer: You may invest in as many deals as your comfort level and financial resources allow.

Question: What if I get short on cash and I need to liquidate my investment?

Answer: We prefer you keep your investment going. However, if you need the funds from your investment, contact us and we will help you convert your investment into cash.

If you have a question that is not answered, please e-mail us at customercare@therealestatedealer.com for a prompt response.