THE POWER OF
PRIVATE MORTGAGE INVESTING Explained!
Private mortgage investing and the power of it is explained in this ebook. Written by our Realtor Roger Loesel with Ditter & Associates. Roger has 13 years of Central Ohio Real Estate experience. He has bought, rehabbed and sold 100’s of Central Ohio Properties. For other clients, investors and himself.
The power of private mortgage investing is that they offer considerably higher returns than traditional loans, and they outperform the stock market over the long term. Central Ohio Real Estate Investment LLC offers the backing of real estate on every investment made. The Central Ohio Real Estate is valued at 20% more than what the investor paid on the investment.
Through experience, the Central Ohio Real Estate Investment team has identified ways to improve rates of return by adjusting terms of the note and other strategies that are seldom used by other private mortgage companies.
At Central Ohio Real Estate Investment LLC, we pair superior returns with low risk. The interest rate you receive depends on the amount of funding you commit: in short, The More You Invest, The More You Earn. Returns are paid quarterly, another advantage over equities, where investors must wait to see most of their returns upon the sale of their stock.
Low-risk investments providing such superior returns are rare. Central Ohio Real Estate Investment LLC rewards our clients with our Returns Policy on both total holdings with us and apart, from the yearly depreciation the properties realize.
Advantages of Private Mortgage Notes as an Investment Vehicle.
Central Ohio Real Estate Investment LLC creates private mortgage notes for one reason: their advantages far surpass paper investments.
- More predictable than the stock market
- Easier to understand than other investing vehicles – everything is in the mortgage/ note
- Real estate is a tangible asset, unlike paper investments – there is always some value
- Less fluctuation than the stock market – aren’t big swings slow-moving
- Greater control over when and how much you invest
When done correctly all returns are tax-free. Maybe a UBIT tax, consult a tax professional. The first reason is the most important. Central Ohio Real Estate Investment LLC believes so strongly in private mortgages because, unlike paper investments, private mortgages are backed by tangible assets that will always have value. If an investor owns stock in a company and that company folds, they’re out of luck. Sure, if they own preferred stock they’ll get a place in line to get paid ahead of common stockholders. That is if there’s any money left after liquidating the company’s assets and paying off its debts.
But should a borrower default on a private mortgage, the note holder can liquidate the property through a quick sale. They can then roll their money into another private mortgage note quickly and start earning returns once again.
All of the private mortgages Central Ohio Real Estate Investment LLC writes; Have a 20% equity position in the property. That means the real estate is worth 20% more than what the fund paid for the note.
Stability of Private Mortgages
Despite the upheavals in the real estate marketplace during 2008 based on Columbus Realtors
statistics, the average sale price of a Central Ohio Home before the real estate crash was $172,531
in 2007. The number dropped to $163,732 in 2008 and bottomed out in 2011 at $156,271. Which is roughly a 10% drop.
Using an example from arguably one of the worst financial disasters of our time. The fact that Central Ohio Real Estate Investment LLC provides 20% equity in every note you are up roughly 10%.
There weren’t too many investments that were up 10% from 2008 to 2011. That is the kind of stability note investments can provide.