Frequently Asked Questions
Who Borrows at High Rates?
We do because we have learned that
... It's Not the Cost of Money That Counts but the Availability.
We make it possible to acquire good deals because the
funds were available from private lenders that would not be available from
banks. If a Commercial Real Estate Investor can get good at locating good deals
on commercial properties, many times the bank wants to loan on the purchase
price not the value of the house, thus penalizing him for being an astute Real
Estate Investor. Having the money available will make or break the deal and
paying a higher interest rate is irrelevant.
Do I need a lot of money?
No! We have investments as small as $30,000. The amount of the loan is determined by the borrower's needs.
Who handles all of the details?
We will. It's our job to get you proper documentation and protect your
interest. All of this costs you nothing.
How do I get paid?
I will set up your account. Just sit back and we will send you a quarterly interest only check for 10% of your investment. If you're retired and like a monthly check, we can do that too!
Is this a long-term investment?
It can be any term you want. You're the boss. Usually a private investor wants a five-year term, but some don't care if it stretches to ten or fifteen years. You can pick a term that suits your strategy for retirement. It's your money and it's your choice.
What if I want to liquidate?
If you want out, it will take from two weeks to a month. You really shouldn't make mortgage loans if you feel you will liquidate shortly, but the option is always available. And unlike a bank CD, there is no penalty for early withdrawal. Just call, and we will handle all of the details.
Is my investment really as safe as it sounds?
Yes! We follow these common sense guidelines that we've talked about.
Your money will grow two, three, or even four times faster than your current
investments and you maintain control.
Remember that making loans is a business and should be treated like a business.
If you set up a simple system and let the professionals implement the system,
your loan portfolio can be hassle free and produce staggering yields. Also
remember, all costs are to be paid by the borrower ... not you!
How do I use my IRA's or pension plan?
Since Uncle Sam isn't taking a bite out of your profits until you draw out the money, more money is left in the account to compound and grow. The results are staggering ...
In order for you to use retirement accounts for loans they must first be administered by a "Third Party Administrator" or TPA. This TPA is set up and approved to administer your loan activities. This means you will probably have to transfer your plan to one of these TPA's, unless of course, your present administrator is set up to do that. When your TPA is located, simply send the transfer form to them and they'll do all of the work for you. Once you've done that ... You're Ready to Make Loans!
When we've selected a property, you simply notify your TPA where to send the check for the gross amount of the loan and you're business. There should be no cost to you except your plan administering costs. Some TPA's will even collect monthly payments for you and deposit them into your account. If you have any questions regarding your plan or its administration, contact your Plan Administrator. If you need help transferring your IRA just give me a call. I've located the best in the country and I have all their forms in stock, so you can get going immediately.
What are my options if Wealth Creation LLC doesn't pay?
Actually, there are several options.
- Call us and we will send your money back.
- We could ask to restructure the note. For example, let's say we are behind on payments to you. Now Wealth Creation Inc. can and would like to keep the commercial property, but they can't come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and make an extra payment on the arrears in addition, or you could simply add the arrears to the principal balance and extend the term of the loan. This means you would be collecting interest on interest for the entire remainder of the loan. There is almost always ways to work it out if both sides are willing.
- Have Wealth Creation L.L.C. deed you the property. This is an opportunity for you to get a commercial property at a greatly discounted price. When this happens, you can create a tremendous profit center by reselling the commercial property.
- If left with no other choice, you should simply foreclose. Foreclosure isn't the evil, time consuming, costly legal process that most people think it is. It's as simple as sending your note to an attorney and saying 'do it'. All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney's office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys' fees, court costs, and all other expenses you have incurred in connection with your loan.
- If you wind up with a business or building(s) that doesn't mean you have to keep it. It can be sold immediately at a fair sale price and still produce a profit over and above your already high yield on your loan.
Now, we're doing a lot of talk about default here and maybe more information than was necessary, but we just wanted to make sure you had all the facts and your questions are answered. In our years of business we have never been late on a payment to a private lender.
Seller Held Notes
Frequently Asked Questions
Why Should I Sell My Real Estate Note?
PEACE OF MIND
Usually a contract is acquired in lieu of the cash actually desired during a real estate sale. If retained long enough, many contracts will eventually pay off. However, by selling all or part of a mortgage you will never again have to worry about:
Collecting the payments
- Default and Foreclosure
- Destruction/devaluation of the property
- Federal Income Tax reporting requirements
- Bankruptcy of the payor
- Divorce or death of the payor
- Abandonment of the property
- Deficiency judgments
- IRS tax liens/other liens against the payor
- Assumption of your note by another payor
What Are Some Common Reasons People Sell Their Notes?
- To pay off debts with a higher interest rate
- To pay unexpected debts such as hospital bills
- To pay for tuition, vacations, or new cars
- To settle estates or divorces
- To relieve bookkeeping and collection burdens
- To invest in a business, stocks, real estate or other more profitable venture
- Tired of collecting small monthly payments and want to enjoy the cash now
- Did not want to carry the note in the first place
What Is My Note Worth?
The value of a note is established by a number of factors, including: type and location of the property, condition of the improvements, structure of the note and mortgage, credit of the payor, priority position, interest rates, and much more.
How Long Will It Take To Receive Funds?
Generally, after we have received the necessary documents and information, it usually takes only 10 working days to process and record the documentation and complete the sale.
Will Selling My Note Have An Effect On The Person Paying Me?
No. All terms and conditions set forth in the original note and mortgage remain in force. The only change will be to whom and where future payments are sent.
Can I Sell A Portion Of My Note?
Yes. We call this a partial purchase. In some cases you may require only a specific amount of cash to make a purchase, handle an emergency, etc. In this case you might choose to sell only a few years of the payments to receive the specific amount desired.
Will I Need To Attend The Closing?
Not necessarily. We can close the transaction by sending you a closing package by overnight delivery along with easy to follow instructions.
At Wealth Creation LLC we are committed to retaining your privacy. If you have any questions, comments, or concerns regarding your privacy in the use of this web site, please contact us at wealthcreationllc@gmail.com
Wealth Creation LLC
P.O. Box 13472
Tempe, AZ 85284
602-774-0643