Cost Of Private Lenders
I am talking to the owner of a Financial Company who deals with retirees that invest with IRAs. He gets paid a one time fee of 7% by the companies he places their money with. I am talking to him about having them invest in mortgages for properties. He says it sounds good but would want the 7% commission like he would get with the other companies.
Investing in real estate mortgages would definitely give higher, safer returns than their current investments. We are offering 10% with monthly payments and 12% with all interest paid when mortgage is paid off (most would do 12% in IRAs). The 7% seems high but I would have access to a lot of money. The way I look at it is that hard money costs 4% so after using them twice it pays for itself (the 7% was a ONE time fee for the initial investment). Maybe I can even have him tell his clients its 10% instead of 12% to offset costs. This will also have no payments and help cashflow.
Does this seem good? Any of you use financial firms to get private mortgages? Does this violate any SEC regulations? Any help would be greatly appreciated.
I am very interested in private money also.
Can you tell if this worked out for you?
I live in Columbus, Ohio
I would be interested as well. I currently use private money between 10-15% interest only payments secured by deed of property. I currently have a shortsale deal that needs private money. Can not have enough of private money. It allows you to be very creative with the financing. I am in Atlanta, Ga and would like to know more about your situation.[ Edited by waltc12 on Date 09/14/2006 ]
After research and advertising, I have found private money outside of this financialist. Someone said, "Instead of paying him 7%, use that money to advertise for privat money." I did that and have come into some good private money with no upfront fees. This is definitely much better. Spend the money to advertise cause private money is definitely worth it.