Invest
Browse, Invest, Collect — Safely and Securely
Fractional Loans
Fractional Loans are where you invest in a portion of that loan, say 20% or 50%. This allows you to diversify your investment among multiple loans.
Managed Funds
For Accredited Investors, Managed Funds are a more passive yet highly effective way to get your investment working quickly.
Whole Loans
Whole loans are where you invest in the entire loan. You are the sole lender and retain 100% control over that loan. Our loan sizes will typically range from $150,000 to $3,000,000.
How to Invest
1. Register
Register to become a PrivateMoneyLoans.com Investor. It only takes a few minutes! Once you Register we will review your information and process your approval. You will receive an email upon approval, usually within a few hours, and certainly by the next business day.
2. Preview
Preview the Trust Deed investments available through our online marketplace (SEE “Offerings”) and select opportunities based on the criteria that’s important to you.
3. Select
You may select from:
- Newly originated loans in which you fund directly into escrow and then close.
- Recently originated loans that have funded, closed escrow and are available for purchase.
- Seasoned loans with a payment history.
4. Pledge
Pledge the dollar amount that you are comfortable with for the term of the loan (all or some fraction of the loan amount). You can increase, decrease or release your pledge at any time prior to funding
5. Review
Transparency is one of the hallmark features of PrivateMoneyLoans.com. Once you have pledged your investment we will provide secure access to the loan file so you can conduct your own due diligence review. You are encouraged to review the loan file with your trusted advisor. PrivateMoneyLoans.com enables you to communicate directly with the loan Sponsor through the platform so that you can get quick answers to any questions or concerns that you may have.
6. Funding
When a loan is fully pledged and thus ready to close, the investment status will change to “Funding Now” at which point all pledges will be final. All pledged investors will be notified, lender documents will be provided for review and approval, along with wire instructions for wiring funds into escrow.
7. Closing
When all pledged funds are received in escrow, along with signed lender and borrower documents (promissory note, deed of trust) we are ready to close. At closing the deed of trust is recorded against the title of the borrower’s property, in the name of investor(s). Your investment is secured by the recorded deed of trust. After recording the funds are released from escrow to the borrower. For loans that have already closed escrow and those that are seasoned all pledged funds are deposited into an assignment escrow. The loan is then assigned to the new owner(s) and recorded. After recording the funds are released from the assignment escrow to the seller(s) of the loan.
8. Distributions
Once escrow has closed, the loan will be boarded with our servicer who will collect monthly payments from the borrower, and process monthly distributions to the Investors. The interest income on the loans you have invested in are automatically deposited each month into your bank account. Loan servicing is managed by Pacific Private Money, Inc., with over $100 Million representing approximately 250 loans in servicing and a 10-year operating history.
9. Reinvest
When the borrower is ready to pay off their loan, either at maturity or earlier, a payoff notice will be provided to you. At payoff, a final interest payment will be made to you along with your remaining principal balance. Your capital is then ready to reinvest.
Interview with Co-Founder Mark Hanf
What You Should Know
The California Bureau of Real Estate Published an overview
of what you should know about Trust Deed Investments.
Investor Qualifications
To make Trust Deed investments through the PrivateMoneyLoans.com online marketplace you do not have to be an Accredited Investor. However, you must be a Qualified California Resident or Qualified California Entity, and the investment must be deemed to be suitable and appropriate for the investor, given the investors investment objectives, portfolio structure, and current financial situation, collectively defined as a “Qualified Investor”.
As part of the registration process each investor will have to certify that they are a Qualified Investor, which qualification requirements are as follows:
Determining Suitability
The factors that determine whether an investor or entity is a Qualified Investor under California law include, investor net worth, income, age, financial situation, investment experience, investment objectives, past investments, and other investments currently held by the investor.
Qualification based on Income or Net Worth
Investors must meet the qualification that a single Trust Deed investment does not exceed (a) 10% of their net worth, exclusive of home, furnishings, and automobiles or (b) 10% of your adjusted gross income for federal income tax purposes for their last tax year or as estimated for the current year.
Capacity to Understand the Investment
Investors must have the financial sophistication and capacity to understand the fundamental aspects of the investment, due to their education, business, financial, or investment experience.
California Residents and Entities
Individual whose income exceeded $200,000 in each of the two most recent calendar years and who has reasonable expectation of reaching the same income level in the current year; OR
Ability to bear the Economic Risk
Investors must be able to bear the economic risk of the investment, up to 100% loss of the capital invested.
PrivateMoneyLoans.com is not restricted to Accredited Investors, however, we welcome Accredited Investors who can certify their Accredited Investor status, as they can participate in both our Trust Deed investments and Managed Funds.