A private mortgage loan is a short-term loan secured by real estate. They are funded by private investors (or a fund of investors) as opposed to conventional lenders such as banks or credit unions. The terms are usually around 12 months, but the loan term can be extended to longer terms of 2-5 years.
Rule 506(c) offerings, which can use general solicitation, but must be sold to accredited investors only, in which the market will let investors dictate the type of information that they need in order to make informed investment decisions.
Step One – Our customer service representative team originate loans by gathering required documents from the borrower.
Step Two – Property valuation is completed by expert.
Step Three – Underwriting contains due diligence on the borrower, property, and drafting the legal rights documents to protect the investor’s capital are in place.
Step Four – COD investment committee signs off on final loan approval.
Step Five – Closing is set for the loan.