Secrets to Earning Safe 10% Returns On Your Hard Earned Money
Imagine making a safe investment where not only did you have complete control of your money but you also earned a 10% return in 3-12 months. This is a very safe investment that produces high rates of return and a higher level of security and liquidity than the stock market.
At Carolina Serenity Homes, we give our clients more control over their investments while safely giving them returns at two to five times the current rate they’re receiving.
These loans are made to real estate investors like ourselves that are secured by real estate. The private lender is given a first or second mortgage that secures their legal interest in the property and secures their investment at a very low Loan to Value (LTV) ratio. Our standard LTV ratios are under 75% of the value of the property securing the loan and frequently as low as 60% to 68%. This means additional security on the investment.
For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That’s a 75% loan-to-value ratio, a much safer approach from that taken by conventional lenders. Banks get into trouble because they make loans at an 85%, 90%, or even 100% loan-to-value ratio leaving them no equity for transfer costs, if they are ever forced into a position where they have to take back the collateral property.
You, as a lender, will never lend more than 75% LTV. As a lender, it is in your best interest to minimize risk and maximize return and this is why a loan should never be made without a 25% safety net. We don’t violate this rule, because your security is at stake.
If you would like to learn more, please contact us and we’ll be happy to answer your questions.