Private Lending for Real Estate
Making real estate loans thru private lending is an incredible way to build wealth in a way that most people aren’t aware exists. In order to use retirement accounts for loans, they must first be administered by a third party custodian.
- Four Square Real Estate will find and evaluate properties for profitability. A repair estimate is completed and the after repair value is calculated.
- Private Lender is contacted. Private lender will decide if he/she would like to fund the project. Terms of lending are negotiated.
- A Mortgage and Promissory Note are prepared. The Mortgage is then recorded at the Tax Recorder’s Office as a lien on the property. This remains a lien until the property is rehabbed and resold.
- An insurance endorsement, naming lender as mortgagee, will also be prepared and in force until the property is resold.
- Once project is finished and resold, the private lender signs a “Mortgage Satisfaction”, it gets recorded at the Tax Recorder’s Office and the lien is released. Proceeds to the private lender are wired to their bank account from the closing.
Are you ready to talk? Simply contact us to schedule a meeting