Private Lending
We pride ourselves on creating a simple yet effective investing solution. We want to show people that there are ways to invest rather than the traditional 401k. This is where private lending comes in!
FAQ
What is private lending?
Private lending is when an individual or group of individuals come together to fund real estate transactions. A private lender can be anyone! We have teachers, construction workers, lawyers, real estate agents, and many others who are lenders in our program.
There are two main advantages to private lending:
- The capital in which you lend is secured by a mortgage. If the investor fails to pay the interest/principle the home will go into default in which case, you take ownership of the home.
- Lending is passive with fixed returns. Real estate investors pay our lenders a fixed rate of 8-10% annualized. We require every investor to set up ACH or BillPay for each of their interest payments.
What is the minimum loan amount?
The minimum loan amount is $60,000.00. There are rare cases where we could accommodate less. We have a program called “Invest with a Buddy” in which you can split the loan amount with another individual.
How does Rosey Real Estate, Co. make money?
In terms of private lending, we make money in three different ways:
- We lend our funds
- We charge the real estate investor a fee for matching them with a lender
- We up charge the loan. For example: If we loan your money at 10%, we charge the borrower an additional 1% on top. Therefore, the borrower will be paying 11%. The additional charge is for servicing the loan.
What is the lending process?
The process of lending follows this timeline:
- Contact a member of the Rosey Real Estate Team
- Determine if it is the right investment for you
- Discuss dollar amounts, legalities, risks
- We will then match you to the correct investor/project
- Traditionally 1-3 months before funds are needed
- Closing occurs/ Start to receive interest only payments
- Term expires and investor returns principle of loan
- Repeat!
Example Deal:
- $60,000.00 loan amount
- 10% interest only payments made monthly ($500.00 paid directly to lender)
- 3-year term (After 3 years expire the $60,000.00 is paid back to lender)
Contact Us Today!
Put us to work and become part of the Rosey Real Estate family.
