Invest your money in a safe, secure investment where you become the bank. Stop dealing with the stock market roller coaster, or those minimal returns on your savings, CD's and IRA's.
Earn more on your investments now!
We help private investors get their money working hard with safe high-interest private mortgage income that will maximize their investment dollars while minimizing risk. Become a private lender in first mortgages. We will submit deals to you and we work with you to service and maintain the loan. You may choose to invest in your area or anywhere in the USA. You can be very hands-on or a completely passive investor... the choice is yours!
We will only lend your money on properties that we would lend our own money on. If you have an IRA, Roth IRA, 401(k), 403(b), or just good ole' fashion CASH, then we can help you invest it. Call us immediately at TBD.
Also, we recommend all private mortgage investors read this book before considering an investment: Private Mortgage Investing: How to Earn 12% or More by Teri B. Clark and Matthew Tabacchi. It's well written and very informative. Lastly, please feel free to check out our Investor's Frequently Asked Questions below...
INVESTORS' FREQUENTLY ASKED QUESTIONS:
What exactly are private mortgages? Why would I choose to invest in them?
A private mortgage is a secured debt obligation, which produces a regular, predictable income stream to the investor with all the security, protections and recourse that a mortgage lien can provide. While mortgages do not typically provide any capital appreciation, they do generate a steady stream of interest payments, which, in today’s market, can exceed current money market rates by up to 10% or more. Unlike stocks, the security is tangible bricks and mortar, where legal protections such as title insurance and many other unique rights and remedies ensure the enforceability of a mortgage lien. Many private mortgage loans are also secured by personal guarantees from the Borrowers, adding another layer of recourse beneficial to the investor.
What kind of returns do private mortgages produce? Is the interest rate fixed?
The typical interest rate for a direct private mortgage ranges from 12% - 18% and even more depending upon the specifics of the project and region of the country. All the private mortgage loans that Dynamic Equity Partners invests in have a fixed rate of interest.
How often will I receive interest payments?
Dynamic Equity Partners makes monthly distributions of interest to its investors.
Do private mortgage investments belong in my portfolio?
Well, have you ever heard of Donald Trump, Steve Forbes, Paul Allen, and Warren Buffet? If you have, then you already know of four guys with private mortgage investing in their portfolio.
Not many investments can dependably generate such strong returns, and few other investments have an asset like real estate as a “backstop” providing a very well protected downside. The key, as in any investment strategy, is to find a good Fund Manager. Consistent success over an extended period of time is, of course, no guarantee of future performance, but it certainly would give some indication of what you can expect. Whether private mortgage investments are right for you will depend upon your time frame, your risk/reward expectations and your anticipated need for liquidity.
Furthermore, private mortgages have stable returns and fit well within a portfolio of stocks, bonds and real estate. Adding these to a portfolio will make the returns of the total portfolio more consistent. When evaluating any potential investment, the advice of a professional investment advisor is helpful in assessing the role of private mortgages in an otherwise liquid investment portfolio.
Why would a Borrower seek a comparatively expensive private mortgage rather than a conventional bank mortgage?
There are many reasons but the two most likely are:
1) Time Crunch: The Borrower has applied for a conventional bank mortgage, but the time-of-the-essence closing date is rapidly approaching, the bank is still completing it’s due diligence, yet the Buyer/Borrower simply has to close in a timely fashion in order to avoid losing a hefty contract deposit or missing out on some outstanding equity in a particular project. After closing the bridge loan with a Private Lender, the Borrower can then take as long as necessary to arrange permanent financing.
2) Transitional Property: Another typical case would involve a Borrower purchasing a vacant property that he plans to convert to another use (office to residential, for example). A bank would rather finance the deal AFTER the Borrower has executed his business plan, rented the property and created cash flow. The Private Lender is willing to get more deeply involved than most banks, evaluating the Borrower’s past track record, the viability of the Borrower’s current business plan to convert/improve the property, as well as the value of the Borrower’s personal guarantee or other collateral. The savvy Borrower is also fully aware that he is only going to have the Private Loan outstanding for perhaps 12 months, and that paying 12% - 18% for such a brief period of time is far LESS expensive than bringing in much more expensive equity partners for the long haul. If an owner or developer raises additional equity by bringing in partners, it is certain that he will have to give up a substantial “piece of the pie”.
What are the different ways that I can participate in private mortgage investments, and what are the advantages/disadvantages of each?
There are two different approaches to participating in a private mortgage investment:
1) We can submit viable loan opportunities for your consideration and you can select which loan(s) to invest in on your own and accept responsibility for all that it entails, including: a) conducting all the necessary due diligence, b) structuring the terms and conditions of the loan, c) hiring and directing an experienced real estate Lender’s attorney to draft the documents and to represent you, and then d) after the loan closing, you would need to actively service the loan yourself.
2) Alternatively, you may choose to participate in Dynamic Equity Partners that is already staffed to do all the above by experienced professionals and benefit from the greater capital and income protection that inherently results from your funds being invested in carefully chosen mortgages.
Is it possible to achieve diversification with this type of investment?
Diversification is one of the primary advantages of investing within Dynamic Equity Partners. Our goal is to have a widely diversified portfolio of private mortgage investments in order to reduce risk as well as to achieve continuity of cash flow (in other words, even if one mortgage is repaid, there are still many other mortgages paying the desired rate of return, resulting in continuous cash flow).
How liquid is my investment and what time commitment do I have to make?
Since most of our bridge loans have terms from 6 months to 5 years there is great flexibility. However once you have committed to fund a mortgage you should be prepared to hold that mortgage for the entire term. If you need liquidity sooner than expect then you may certainly choose to sell the mortgage note to another private investor (which we can arrange at no cost to you) but expect to sell the mortgage note at a discount.
How safe are private mortgage investments and what are some of the risks?
There are inherent protections unique to mortgage lending which can significantly limit any downside risk when carefully implemented in the deal’s structure and in the mortgage documents. The biggest possible risk, of course, is that for one reason or another the Borrower stops paying the mortgage and at the same time the value of the collateral diminishes. Although we have not seen this occur in 5 years of originating, managing and servicing such mortgages, it is theoretically a risk.
To offset this risk factor, in most cases there will also be one or more personal guarantees. In situations, for example, where a property is being rehabilitated, an interest reserve may be established to fund the interest payments during the time that the property is being renovated and not producing any cash flow. The key is choosing the loans and the Borrowers very carefully and then anticipating (and incorporating into the loan documents) ways to offset the risk of a non-performing loan.
Keep in mind that the mortgage documents assess late fees and default rates of interest that serve as powerful disincentives for Borrowers to make any late payments or to default on their loan obligations. If, however, the deal has been structured properly, there will be plenty of equity in the property to protect the Lender.
As in any investment opportunity, the quality of the management is of key importance. You want seasoned professionals in charge who have many years of experience successfully originating and managing a portfolio of private mortgages. Next, you need to be sure that the Managers are also investing their own personal funds, side by side with the other investors. The Managers of Dynamic Equity Partners have made a substantial investment of their personal funds on the same terms as the other investors.
What is the minimum investment that I can make?
$10,000 is required to get the ball rolling.
Can I add to my investment later on if I so choose?
Yes, Dynamic Equity Partners permits current investors to add to their investment.
Can I invest with my IRA?
Yes. There are many IRA custodians across the US that handle self-directed IRA’s and are familiar with this type of investment. You can utilize all forms of retirement plans including Keogh’s, Profit Sharing Plans, etc. Tax-deferred investors (IRA’s, Pension Plans, Keogh’s and the like) should speak with their financial advisor about any possible impact of UBTI (Unrelated Business Taxable Income).
Most people are tired of collecting as little as .5% or as high as 3% on their money.
Dynamic Equity Partners is always looking for new investors to join our elite team. Our minimum requirement for any initial investment from any investor is $10,000.00(USD) and there is no maximum. Our terms can be found on the Products page. Let us put your money to work for you.
We offer the following to choices to our investors:
Invest with Us
Partner up with us on our next deal. We will do everything and all you need to do is sit back and collect your checks. You will have the same risks as we have with the transaction, but our highly trained professionals will not let you down.
Invest on Your Own
Go ahead and cherry pick your deal. We will present you with as many deals as it takes for you to make up your mind on which one you want if any at all. You have the option of taking on the deal on your own completely and managing it on your own, or you can let us manage it for you for just 3% a year of the face amount.