INVEST IN REAL ESTATE NOTES
Unlike purchasing a note outright or lending your money to a borrower directly, a Collateral Transfer of Lien adds an extra layer of protection to your investment. In this scenario, you are lending your money directly to Investor Loan Source on a two-year agreement and we are pledging one of our professionally vetted and processed notes as collateral for our loan from you. We then make monthly interest payments to you for the life of the note or maturity date of the agreement, whichever comes first. This provides you with several additional benefits.
WHAT ARE THE ADVANTAGES OF INVESTING IN REAL ESTATE NOTES?
- If our borrower fails to make timely payments to us, we are still obligated to pay you monthly interest.
- If our borrower defaults, we will pay your loan off and proceed with the foreclosure process against our borrower.
- You have the benefit of our team marketing, vetting and underwriting the loans. Our typical due diligence file for each loan we write would fill a 2” three-ring binder.
- We are interacting with active real estate investors, title companies and realtors on a daily basis. As a company, we attend over 20 real estate events each month. This gives us a strong sense of market trends and allows us to quickly adjust our lending criteria as needed.
- Our loans are backed by real estate and are generally written up to 75% of the value of the real estate collateral or less. Investments backed by real estate are considered very safe and are less likely to fluctuate like stocks and bonds
- One of the best advantages of investing in our real estate notes is the passivity. When you purchase a note with us we alleviate the stress of vetting the paperwork, networking to find active experienced real estate investors, then vetting the borrower, verifying title, maintaining insurance and property taxes, etc. Let us do the heavy lifting for you.
An Investment You Can Feel Good About
The whole point of investing is to grow your wealth and protect principal while doing so. While no investment is 100% guaranteed, our Collateral Transfer of Note investment provides you with a dual layer of protection. We have minimized the risk of ownership by placing our company between you and the borrower. Not only would the borrower have to default on their payment, but Investor Loan Source would have to as well. This has never happened in the history of our company. Even if this scenario were to occur, you would then have the legal right to claim ownership of the collateral. Your due diligence consists of deciding how likely this scenario is to occur and how comfortable you are with our underwriting.
OUR WINNING APPROACH
We utilize the experienced team that we’ve built at Investor Loan Source that together has processed over 1,500 loans in the past six years. The bulk of our team are real estate investors themselves and together have over two decades of expertise in the field. You can invest in these notes passively and utilize or experience and market knowledge to grow your personal wealth with minimal risk.
The notes we are offering are strong long-term notes that are considered safe and low risk. They were written with strict underwriting guidelines on single family rental properties. The foreclosure rate on our loans is very low - less than 1/2 of one percent.
These long term notes are performing - meaning the borrower is paying the mortgage on time and has not missed a payment. With every investment there is always some risk, but performing notes are considered a strong, safe investment as the borrower is already making regular, timely payments.
If you so desire, our professional servicing department will continue to collect payments from the borrower, assess and process repair draw requests, and ensure that property taxes and the correct hazard insurance is paid and maintained by the borrower.
*This is not a solicitation for any type of investment. Before investing, a prospective investor must read the applicable Fund’s Private Placement Memorandum (PPM) and seek advice from their financial, tax and legal professionals. An investment in the Funds or in notes requires verification of the prospective investor’s status as an accredited investor pursuant to Rule 506(c) promulgated under the Securities Act.