A mortgage involves two parties: the borrower and the lender. On the other hand, a trust deed involves at least three parties: the borrower, the lender and a trustee who holds the legal title for the property. Ultimately, both a mortgage and a trust deed serve the same purpose, which is to secure a real estate transaction. Some States use a mortgage while others use a trust deed.
From my perspective, seller finance properties are more secure than investing in stocks or renting out real estate to tenants. The seller finance properties in my portfolio are secured by solid collateral. As a private lender you have access to these properties at a value well below the Owner Finance Value to our buyers—which gives a certain amount of buffer that lowers the risk of loss.
Seller Finance investors often get money from equity lines of credit on properties, cash savings or retirement accounts (such as IRAs). Sometimes, people also choose to create a business partnership with friends or family, in order to pool their resources to lend on these deals. *Note: we do not pool monies but will only place one lender with one property (aka your friends and/or family LLC or partnership may qualify)
By lender investing in secured, performing seller finance properties, you receive simple interest payments every month or quarter based on individual investor needs.
Seller Finance Lending Investing (SFLI) is on par with physical property when it comes to the ROI. However, where SFLI outshines physical property is in the minimal amount of overhead and stress. With SFLI you don’t have to worry about tenants, termites, repairs and other responsibilities associated with being a landlord.
In general, we find the deal, you fund the deal, we receive the keys to the property after closing with the title company/attorney. We will immediately market the property to our list of ready and pre-qualified Buyers offering private financing secured by a down payment. From the time of possession until the new owner occupies is usually 30-45 days (weather conditions and seasons may impact this timeframe). Our properties are sold on a contract for deed or land contract (state dependent). You receive an interest payment on the total amount you lent out to us.
Each State, and sometimes each county in a State, has specific laws that spell out the rights of a lender, as well as how to proceed with foreclosures. Because our properties are sold on a Contract for Deed/Land Contract to our buyers, generally speaking the process is similar to an eviction. Additionally, because I am the holder of the deed you will hold a deed of trust or mortgage against the property for which our company is responsible. As an additional measure of security, we will place on file a Deed in Lieu of foreclosure to protect your interests. If there is ever a default on the property on our part, you will receive the property back without any fuss. We will even help you to get it sold through a qualified real estate agent or local investor. To ensure that everything is done correctly, we work with a network of attorneys around the country who understand the nuances of these laws.
To get the ball rolling, please schedule an initial discovery session with me via the Contact menu link found at the top of this site. This will be a private, 30-minute consultation where I can get a better understanding of your needs and you can ask any questions that you have.
We currently support personal investment accounts, joint accounts, and certain entity accounts (Trusts, Limited Liability Companies, Limited Partnerships, C Corporations, and S Corporations). For more information on IRA accounts, see below.
Yes, you can invest through your IRA. If you currently have a self-directed IRA, please check with your current custodian to ensure that they will allow you to place your investment with Salt Pacific Investments.
No. We currently have investment opportunities that are open to accredited and non-accredited investors. Please schedule an appointment to discuss your options.
You receive simple interest payments every month or quarter based on individual investor lender needs.
SFL funds are used for the total acquisition cost of the property. This includes but is not limited to the actual purchase price of the property, acquisition fees, legal and transaction costs, capital projects, and reserves.
Drive-bys are encouraged. Walk-throughs of the property must be scheduled and are available subject to our level of access to the property at the time of acquisition (if tenants are present their rights will be considered based on state and local ordinances and rules until they are vacated).