What kind of returns do private mortgages and trust deeds produce?
Our private mortgages and trust deeds are based on loans given to our borrowers. The rates paid by borrowers range from 10-25%. We also charge the borrowers origination fees at the time of closing often called “points”. Because of the rates and the points we charge, we can safely assume that each deal will bring at least a 10-20% “Return-on-Investment” (ROI), but sometimes even more. Since we make short-term bridge loans we can very easily turn your money over several times each fiscal year. If we can do 3-4 deals per year with your money, we will very easily surpass our annual goal of helping you earn 18% or more. Remember, the goal is 12-18% annually but if you desire more “stable” long-term returns we can easily get you 8-12%. To earn 18% or more assumes a moderate risk of mortgage default from the borrower however with the strong backstop of equity in real estate your risk of lost is virtually ZERO! The liquidity of the funds invested cannot be guaranteed but the expectation of hug
