8% Interest per Annum; Short-Term Secured Note
Can this really be safer than a AAA Bond??
Peter Berkman, Esq.
If you want to loan your money, SAFELY, and still receive a high rate of return, you should read this. This product ideally suits accredited investors, fiduciaries, CFOs, even retirees with a self-directed IRA.
High net worth and institutional investors will have a keen interest in becoming the guarantor of these loans. You will be able to receive ~3.5% per annum of the outstanding loan balance just by issuing a letter of guarantee – no actual disbursement of funds required for this
Did we design a product that is safer than a AAA Bond? You decide.
We are making loans to local rehabbers in the Tampa Bay area. We impose very restrictive criteria; but, if they meet our guidelines, we can close in 72-hours.
Here are our guidelines:
- 200% Collateral (“50% LTV”)
- We review the Purchase Contract for the actual sales price (purchase price less concessions)
- We perform a BPO (Brokers Price Opinion on an “AS IS” price)
- We perform a BPO on the proposed purchase and the proposed collateral
- We loan the lesser of the purchase price or the BPO
- The borrower must then agree to let us attach to a mortgage; both, the proposed property and another unencumbered property of equal or greater value. We will then have two or more properties attached to one note, 200% collateral.
- We write a note and mortgage with a term of 120-days, giving the borrower the option to extend the note for another 120-days.
- The borrower prepays the 120-days of interest at closing with no refunds for early payoff.
- The transaction must close at a title company and we require a lender’s title policy
- The borrower must purchase hazard insurance with proof of insurance at closing
- The mortgage includes an assignment of rents and a personal guarantee by the borrower
- Should the borrower sell either the new purchase or the additional collateral (and not pay the note in full), the proceeds from the sale must remain in our attorney’s trust account
- The borrower may then use the proceeds in the trust account to purchase another property, again subject to our “due diligence” procedure.
- IF THE LENDER REQUIRES THEIR MONEY BACK, AT ANY TIME, FOR ANY REASON, The lender may sell the note to the guarantor (essentially “Call in the Loan”) at any time, at the lender’s sole discretion, however the lender will forfeit most of the prepaid interest received at closing; and only receive -0-% return if called in during the first 30-days, or a 3% return (per annum) if called in at any time between 31 the 120-days. The borrower must then repay the loan or extend it for another 120-days prepaying the interest again.
- High net worth or institutional investors will guarantee the loan against default by the borrower. Should any borrower default by not repaying the loan in 120-days or default for any other reason (at the end of 120-days) the guarantor shall immediately upon the request of the lender, purchase the note at face value
- Gary Casper, is the president, founder, and managing mortgage broker of Casper & Friends, Inc. a licensed mortgage company. He has personally rehabbed over 100 homes by successfully bidding on properties at court foreclosure auctions. All fees are paid by the borrower at closing. Gary Casper, MBA, has been a licensed real estate agent/broker since 1991
- Peter Berkman, Esq. is currently a real estate broker in Florida and South Carolina, and a Florida licensed attorney focusing on securities law and real estate. Peter has an extensive background in matters involving risk and risk aversion. After law school, he became a “Specialist” on the American Stock Exchange and the NYSE Options Exchange. As an expert in analyzing risk vs. reward, he believes this model offers a substantially higher return for the comparative level of risk. Simply, it’s much more solid and secure than other products offering the same return.
- These two associates together provide a level of competence that is hard to match in the real estate and real estate lending industry.
Could this be a better investment than AAA bonds?
- It’s short-term (thereby eliminating market risk)
- The lender holds the collateral in their own name
- The note is as liquid as any blue-chip stock, as it may be sold to a guarantor at any time
- We have built in multiple layers of protection, beginning with 200% collateral and ending with a guarantee of repurchase by an institutional investor
- The collateral continues to increase as the borrower renovates the property
- The interest is prepaid
If you are interested in becoming one of our lenders or a guarantor, please contact Gary Casper at firstname.lastname@example.org You may contact Peter Berkman, Esq. at 813-600-2971, email email@example.com or on LinkedIn Peter Berkman to answer any questions you may have; but, be advised that this is not a solicitation for business. Peter Berkman, Esq. represents Casper & Friends, Inc. and your fiduciary would be Casper & Friends, Inc. only.
Also, ask to join our private Facebook Group. Private Lenders for Rehabbers https://www.facebook.com/groups/109844879357737/
If you are a borrower requesting funds in the State of Florida, you may contact Gary Casper License # 1325724 on LinkedIn https://www.linkedin.com/in/gary-casper-463a4468?trk=nav_responsive_tab_profile or at firstname.lastname@example.org for more information.
Disclaimer: Our private lenders only lend to corporations not individuals and never on owner occupied properties. Each private lender determines their rate sheet. Please do not consider this an offer to lend funds as we are merely informing additional private lenders of an alternative investment vehicle.
Disclaimer: The information in this blog post (“post”) is provided for general informational purposes only, and may not reflect the current law in your jurisdiction. No information contained in this post should be construed as legal advice from Peter Berkman, Esq. or the individual author, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through, this Post without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from a lawyer licensed in the recipient’s state, country or other appropriate licensing jurisdiction.