Why is the rate of return so much higher than Certificates of Deposit or Annuities?
Direct Lending Group requires DLG borrowers to provide DLG a first position mortgage or deed of trust on the borrower s real estate as security for the DLG loan. In general, these loans are made to borrowers who are, for various reasons, unable to qualify for conventional type bank loans. This may be due to poor credit history or other problems such as divorce or a prior bankruptcy. DLG s loan evaluation includes asset value and the borrower s present financial circumstances. Conventional lenders focus more on credit scores. As a rule of thumb, risk is commensurate with reward. Although there is more risk in lending money to a borrower with a bad credit history, the DLG investor is compensated with a higher rate of return. . DLG s experienced underwriters independently review the borrower s present financial condition, cash flow, as well as the value of the real estate offered as security. DLG s loans do not exceed seventy percent (70%) of the value of the real estate provided to secur
