Helping Private
LEnders Place Capital
Most Private Lenders who wish to invest their own funds, or even IRA funds, into private loans often don’t know where to start. Perhaps they lack the resources and/or experience to properly underwrite and close private loans. As a licensed Mortgage Company with leaders with more than 30 years of formal lending experience, we help Private Lenders place their capital into the lending space.
Underwriting Loans for You
The majority of private lenders come from professions other than lending. They make their money in other professions and then decide to start lending that money out. The problem is that they usually lack the formal credit background necessary to truly underwrite the very loans they wish to make. They also might be emotionally close to the potential borrower making it very difficult to say “no” when appropriate. As licensed mortgage professionals, we have the ability to pull credit reports and have access to other resources to properly, professionally underwrite your loans for you. Call us and let’s discuss how we can help.
The cost of this service depends on the scope of work you expect from us. Is it to simply take the application, gather documents from the customer, pull credit, and wrap it up in a bow for you to review, or is it a fully-underwritten file you seek? Let’s talk through your needs and expectations to develop the proper scope of work.
Brokering Loans to You
Castle Rock is a licensed Mortgage Brokerage Business, so brokering loans to lenders is what we do. This isn’t just limited to the large institutional investors we often work with. Sometimes, we’ll sell loans to private lenders. If you’re seeking to fund loans that are underwritten by a professional, licensed Mortgage Company, perhaps we can help.
This process is no different than how we work with larger funds. We first learn your lending criteria and guidelines. When we have a client that fits those requirements, we take the application, pull credit, and get the file ready for your underwriting review. If you like what you see and want to fund the loan, then we present those terms to the borrower and a closing with a title company is arranged. You fund the loan…it’s your loan. On the settlement statement, the borrower pays us our broker fee. It’s pretty straight forward.
Fixed Return Program
If you want to passively deploy capital and let us completely handle things, we’ve got a great program to help with that. We’ll allow you to invest as little as $35,000 and we’ll pay you a fixed return for 12, 18, 24, or 36 months with us paying a higher fixed return the longer the term you choose. If you have a smaller amount of capital to deploy and/or simply want a passive, fixed return, ask about this program.
Although not exclusively used for this category, this money is usually used for shorter-term financing. Much of it focuses on ultra-short-term transactional funding to back investors to take down a property when an end-buyer is already under contract. Other times, it might be a high-yield, 12-month term loan backed by real estate.