Private Money: What Happens When a Deal Goes Sideways?

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Real Estate Agent with Mason Real Estate CA BRE 01444168

Private Money:  What Happens When a Deal Goes Sideways?

As a private money trust deed investor with the Retaja Group, Inc. you will have security in five areas that are paramount to the success of every deal we present to you for consideration of the investment of your hard earned money.

  • ·         Equity Position in the Property:  While every transaction is different, the trust deed lender will always have equity in the project.  The greater the equity of the lender, the greater the risk and the greater the return.
  • ·         Borrower Cash into the deal:  The amount of cash a real estate investor has into the deal reduces the equity and the risk of the trust deed investor.  The less risk of the lender reduces the return – but any return in trust deed investing will always be substantially higher than can be found with traditional investment vehicles.
  • ·         Liquidity of the Borrower:  While the borrower’s credit or liquidity is not what defines a deal, it does help determine risk and reward.  A borrower who has never been involved with a real estate rehab project will not have the same risk as one who regularly turns 3, 5 or more deals in a year.  The inexperience does not negate a worthwhile project it just equates to a greater risk – and therefore a higher interest and a higher reward for the trust deed investor.  The same criteria are evaluated with a potential borrower who does not have any of their own liquidity.
  • ·         The Likelihood of Repayment – At Retaja Group, we focus on relationships.  We are not a faceless Wall Street entity only concerned with the bottom line – we are real people who develop ongoing personal relationships with both our borrowers and lenders.  As a result of our service, borrowers are much more likely to repay their loans – as agreed.
  • ·         The Experience of Retaja Group – Having been involved in Real Estate Investing for over 25 years of combined experience, you can feel confident that your hard earned investment dollars are being brokered and supervised by caring, experiences and successful individuals who know how to maneuver in the ever changing landscape of real estate investments.

Nothing is ever perfect.  Cold hard facts of life and yes, every now and then a deal will go sideways and the borrow stops making payments and the lender has to foreclose.  When this happens, The Retaja Group is there every step of the way helping our trust deed investors recover every possible dollar, as quickly as possible as well as assisting in the foreclosure process – often negotiating a deed in lieu of foreclosure and then we will help our trust deed investor complete the project with all of our tools and resources to make everyone whole again, as soon as possible.  By the very nature of our evaluations going into a loan, our private money lenders typically end up better off than had the loan been paid as agreed.

If you want to read more of my articles on Private Money, please just follow this. link.

 

 

 

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Until Next Time, Have a Blessed Day,

John Occhi, ePRO, REALTOR®
DRE Lic No: 01444168


ePro,John Occhi,www.johnocchi.com,realtor      Certified Probate Real Estate Specialist Logo Awarded to John OcchiFive Star Logo,Certification,REO,Five Star Institute     

Excellence in Real Estate,Team Log,John Occhi,www.johnocchi.com,hemet,san jacinto,CA  

This blog and the contents written here is the intellectual property of John Occhi, Temecula - Murrieta, CA REALTOR® in the South West Riverside County region of the Inland Empire of Southern California.  The views and opinions expressed are just that - views and opinions of John Occhi and those who comment.  Please note that I am not an attorney or a tax professional and any time I discuss either topic, I suggest you consult with the proper professional for relevant assistance. 


I am proud to be a full time REALTOR® who is proud to be a contributing member of the ActiveRain community.

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