If you aren’t meeting your financial goals this year due to lack of deals, consider investing in 2nd Trust Deed opportunities or Gap Loans, as they are affectionately called.
You get handed the best deals on a silver platter – without the responsibility of marketing, lead generation, follow-up, deal structure, project management, etc. you earn upfront points, monthly interest payments and profit splits at the end.
Investors who want to invest in 2nd Trust Deeds, must have between $150K-$10M to deploy on primarily California & Florida Non-Owner Occupied & Commercial loans.
Every lender wants to make loans to the best operators: these are the investors with lots of experience, stable business models and capital reserves..but the catch 22 is: these guys already have lender relationships, one that offers (too good to pass up) terms, usually 100% of their acquisition costs, 100% of their rehab costs, and interest reserves to cover the payments for 6-18 months.
So the best way for a lender to work with the best operators is to come in as a Gap lender in 2nd position, but since the interest payments are covered on the 1st TD and rehab budgets are controlled, it offers a great opportunity to make a safe loan with a high return.
Usually, these Gap loans are from $50k-$200k and short-term, 6-12 months, they may cover closing costs, rehab and/or costs to acquire permits and plans, which would enable the next stage of funding.
Borrowers are looking to connect with individuals who have experience in making private investment loans.
- These investors can enjoy passive income from 9.99%-13% + per annum, plus a generous split of the profits.
- The loans are secured by trust deeds and will be 1st and 2nd Trust Deeds.
- Rehab Funds are always held in control to protect the investors.
- Everything can be turnkey: Servicing, Foreclosure (if necessary) Project management/Rehab & finally disposition.
- With a full pipeline, you can immediately deploy your funds to work on low LTV deals with a turnover of those funds at least twice per year. In fact, I constantly get requests from investors needing funds for their Gaps.
- Escrow & Title with every transaction.
- Investors receive full due-diligence files before making a decision or deploying funds. If interested inquire below or email me.