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General Questions
Q.
Are the
mortgages local?
Q. What size mortgage can I start
with?
Q. How is the
interest paid?
Q.
What is the
interest rate?
Q.
How safe is
my principal?
Q. Can I use
my IRA funds?
About the Security Features of the Loans
Q.
What is the
Ratio of the Loan Amount to the Value of the Property?
Q. What About Mortgage Insurance?
Q. What is the Average Duration of a Loan and what Happens to my Investment when
the Mortgage pays off?
Q. What Security do I have From the Borrowers?
Q. What if the Borrower Doesn’t Make His Payments?
About the Program Mechanics
Q.
What Documentation Will I receive in a Loan Package Proposal?
Q. How do I get started in the Mortgage Investment Program?
Q. Are the
mortgages local?
A. Yes, all the current mortgages being offered are
located in Dade, Broward or Palm Beach County.
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Q. What size mortgage can I start
with?
A. Mortgages start at $25,000 and go up
from there.
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Q. How is the
interest paid?
A. Interest is paid monthly and is sent directly to
you.
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Q. What is the
interest rate?
A. Most mortgages are issued at approximately 11%
to 13%. Economic conditions will determine the daily rate.
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Q. How safe is
my principal?
A. Your money is always placed in a first mortgage.
You are the registered lien holder of the property. An additional layer of
protection is added by loaning only 50%to no more than 70% of the home’s value.
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Q. Can I use
my IRA funds?
A. Yes, mortgages are IRA eligible.
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About the Security Features of the Loans
Q. What is the
Ratio of the Loan Amount to the Value of the Property?
A. The loan amounts will be 70% loan-to-value or less providing an
adequate margin that virtually ensures Investors of a full return. Independent
Licensed, Certified Appraisers determine the values of the properties, and
copies of these appraisals are provided in the loan package. Values are based on
after-repaired values. If the property is not 100% repaired at the time the
mortgage is transferred to the Investor from EquityLink’s warehouse lines,
EquityLink will hold escrowed funds from the borrower in excess of the amount
required to complete the repairs. Most mortgage investment companies such as
Fannie Mae, Freddie Mac, or Real Estate Investment Trusts fund mortgages at 90%
loan-to-value or higher. In addition, the property is usually located out of
their area, and very little is known about the property. EquityLink offers an
exceptionally secure investment opportunity through our extensive knowledge of
each property, our close proximity to the properties’ location, and a 70% loan
to value of less.
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Q. What About Mortgage Insurance?
A. Mortgage Insurance, issued by a major Title Insurance Company in amounts
equal to or in excess of the mortgage is provided with each mortgage. This
ensures the Investor that the property has been mortgaged with a clean and
insured title, and that the mortgage is insured to be in 1st position. Investors
will receive a copy of this insurance in mortgage loan package.
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Q. What is the Average Duration of a Loan and what Happens to my Investment when
the Mortgage pays off?
A. Each mortgage is a one-year balloon mortgage. Most repairs are completed
within approximately five months. The property is then to an end-user, who then
secures a new 30-year term mortgage from a conventional lender. The borrower’s
mortgage is then paid off. This mortgage term provides for greater liquidity of
the investment, perfect for a Private Mortgage Investor. These mortgage notes
(an average of $3 to $5 million worth) are maintained in our commercial bank
warehouse lines. Therefore, when a mortgage pays off there is virtually no
down-time. The Mortgage Investor will be notified prior to a mortgage pay-off,
and given the opportunity to reinvest into another mortgage of similar value.
With this program, a Mortgage Investor is assured that the money will be
actively earning 12.5% at all times. All in all, the Private Mortgage Investor
gets the best of both worlds: 1) the high interest and high security of a
Mortgage Investment, and 2) the Investor enjoys a relatively liquid investment.
We make the transition from one Mortgage Investment to another hassle-free on
the part of the Mortgage Investor.
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Q. What Security do I have From the Borrowers?
A. All borrows are given a full credit and background check. EquityLink only
loans money to borrowers whom we believe will complete the project successfully
and on time. Our borrowers make a minimum of a $5,000 cash investment over and
above the 70% loan-to-value or less mortgage amount. Borrowers are limited to a
maximum of two investment property loans at any one time. Each borrower, most of
whom have already completed a project successfully, is given personal attention
and consulting to ensure a mutually profitable outcome.
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Q. What if the Borrower Doesn’t Make His Payments?
A. Private Mortgage Investors need not commit their time or involvement
regarding non-performing loans. Non-performing loan servicing programs are
provided for Private Mortgage Investors. Our Loan Servicing Specialists are
experts at successfully resolving non-performing loan situations using one of
the most comprehensive and efficient non-performing loan programs in the
industry. This exceptionally effective program has been proven to bring a
successful resolution to non-performing loans. EquityLink has the right
experience, staff, and program to quickly solve non-performing loan problems.
(See Appendix 4 "Non-Performing Loan Policy" for more details.)
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About the Program Mechanics
Q. What Documentation Will I receive in a Loan Package Proposal?
A. Your EquityLink loan package proposal consists of ; 1) an investment summary
including closing title company information, square-footage of the property,
appraised value, loan amount, money escrowed at closing for the repairs and the
total borrower investment at closing, 2) transfer of funds instructions, 3)
current property appraisal, 4) current survey, 5) current termite inspection, 6)
copy of the building inspectors report. Upon purchase of the mortgage loan the
following documentation will be sent to you within 30 days; 1) Original Note
endorsed to you, 2) Original Recorded Mortgage, 3) Original Title Commitment, 4)
Original Title Policy, 5) Original Recorded Assignment of Mortgage, 6) Original
Appraisal, 7) Copy of the letter sent to the insurance company adding you as the
additional loss payee, 8) Original Servicing Agreement for signatures. All of
the paperwork is pre-packaged into a pre-labeled file to make it easy for the
investor to store and access information.
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Q. How do I get started in the Mortgage Investment Program?
A. We make investing easy. Simply
contact us and request a loan package.
After you review and approve the loan package, EquityLink will handle the
details of assigning the mortgages into the name or entity you designate. Our
experienced professionals will execute the transaction quickly and accurately
for you. Now, all you have to do is just sit back and cash your monthly interest
payment checks at 12.5% APR on your total investment. You can rest easy knowing
that you have invested in a highly secure, proven investment program with honest
knowledgeable people hard at work for you.
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