Become A Private Lender

Why should I become a Private Lender?

A Private Lender is a person or company who lends money to an individual or an organization and is not a professional lending institution.  The Private Lender can be a person like you with a 401K, IRA, SEPT Plan, Line of Credit, Equity in your home, or just plain cash. The advantages of being a Private Lender are the high rate of return on investment and the ability to lend on a secure investment. This means, that you can become a Private Lender by realizing your assets as a beneficial investment opportunity!

There are 4 main reasons to become a private lender:

High Rate of Return - With a traditional retirement account, invested in CDs, mutual funds, stocks and bonds, the market is always in fluctuation. Financial guidelines suggest that you should aim for an average rate of return of 8%. The reality is usually much lower and in recent years is even lower still. In addition if you invest in mutual funds or stocks, there is no control and no guarantees.  Chadwick Morris Group offers a significantly higher rate of return, secured by a mortgage on Real Estate purchased significantly below current market value. By investing in Real Estate with Chadwick Morris Group you will be earning more for your money.

Security – When done the Chadwick Morris way, Real Estate is a safe investment. Chadwick Morris borrows money to fund its aquisition and development of property. We buy at the right price, assuring plenty of equity in the property. We never borrow more than 75% of the After Repair Value. As a Private Lender, you will be in first Lien Holder position; that is, your loan will be secured by a first mortgage on the property. Furthermore, we do not handle the money directly: it goes to the Title Company for disbursement. When the house is ultimately sold, the Title Company pays you back directly and releases the lien. The Title Company make sure that all other liens are released.

Control - The fact is that in typical investments ranging from 401K’s to IRA’s or CD’s, you truly do not have control over these investments. Either a Brokerage Firm, an employer, or a bank is ultimately controlling your money. As a private lender, you decide each time you lend. These loans are typically repaid within 2 to 4 months, and then you decide whether to reinvest.

Ease - As a Private Lender you do not have to worry about paperwork. Chadwick Morris Group and the Title Company provide all of the paperwork. A Private Lender will see a return on investment, typically in 60 to 120 days (or less). It will depend on whether the purchaser’s lender requires title seasoning.

We will walk you through the deal ARV (After Repair Value), what we are buying it for, how much is need for repairs and how much is needed for closing costs:

180,000 Contract Price + 36,000 Repairs + 4,000 Closing Cost

=

220,000 Loan / 350,000 Market Value

You will only lend $220,000 for a house that is worth $350,000. We do not touch the $180,000 or the $4,000. We only draw money from the $36,000 for repairs. The Title Company will handle the rest. If you do not have enough capital to invest the full amount, we can pool you with other investors, who have smaller blocks of capital. We will send you documents and pictures as the work is being completed, and you are allowed to schedule a visit to the property with one of our investment coordinators to see the progress first hand if you wish, but the pictures are designed to avoid wasting your valuable time.

In summary we give you a Promissory Note, which is a guarentee to pay back the money. In addition you will have the recorded Deed of Trust, which is the instrument that secures the note and guarantees that we will pay the money back. The Deed of Trust is recorded in the county land records and establishes the lien. You will also receive a BPO (An opinion of ARV, supported by comparables), a certificate of hazard insurance, and a lender’s title insurance policy.