As a professional real estate investment company that partners with various investors, we help you earn a better return (often two to five times the rates of other secured investments) while maintaining short term liquidity that you may not receive with other options. One opportunity to invest with us is our program known as a private mortgage. Our firm's proprietary version of this basic financial concept is called Smart Capital Opportunities in Real Estate (SCORE). These opportunities have interest rate returns that are fixed and can be designed to pay returns on an investor friendly schedule.

The simplest way to understand Private Mortgage loans is to think about how a bank makes their mortgage loans. (While this example is basic in nature it does explain their method.):

The bank borrows money from people by offering them a certificate of deposit and paying them 2% and then lends the money out to people wanting a loan at the rate of 6%. The difference of 4% is called the spread, and is the basic building block of how a bank makes their profit. As you can see, the bank is therefore the “middleman” in making loans.

Using the above example, our process simply cuts out the “middleman” and allows you to earn the higher rate of return enjoyed by the bank. Our SCORE program has no additional costs and has no commission charge. Furthermore, we have interest payment options to meet your needs and our loans usually last only from 6 to 60 months, depending on the project, at which time you will receive the return of your principle amount. After the return of your funds, you can decide if you wish to participate again with another SCORE program purchase. And one more very important thing, in this program we NEVER co-mingle or pool funds together...... one Investor, one Private Mortgage.

All of our transactions are handled by attorneys at some of the best title companies in the country. All documents are drawn up to meet state laws and county regulations. You will always be issued a First Mortgage and Note on the property for the full amount that we borrowed which means you have the best collateral for your SCORE investment.

Overview of the program:

  • · All loans are secured by a first lien on the property. This means that your loan will be returned to you before we receive any funds and/or profit from the project.
  • · All properties are immediately insured at least for the purchase price plus renovations with the lender (you) listed as an additional insured.
  • · A full title search is conducted and title insurance is purchased prior to property acquisition.
  • · All investor funds are sent to a local title company and are separate from the operations of our company.
  • · A legal and complete promissory note and mortgage will be executed on the property.
  • · All investors will receive a copy of the following:
    • · Copy of recorded mortgage.
    • · Original promissory note.
    • · Copy of insurance policy.
    • · Copy of title insurance policy.
  • · All set-up costs and documentation are handled by Tetra Homes, Inc. for your benefit.
  • Terms:
  • · Your loan is tied to a specific project and never co-mingled.
  • · The time-line of our projects are typically ranging from six to sixty months.
  • · Upon written request and 90 days notice, we will perform a “best efforts” process to wind down your respective project and liquidate your loan. Unlike redeeming a CD prior to maturity, we will not charge any fee for early liquidation.
  • Payments:
  • · Principal is repaid at the time of project maturity.
  • · Interest payments are made on a monthly, quarterly or maturity basis, depending on the project.
  • Location:
  • · We will invest your loan in one of our local property projects, usually near Cincinnati.
  • · We use our network of local state title companies that provide full service to our investors.
  • Process:
  • · Once you decide that you are ready, we will give you wiring instructions where to send your funds.
  • · Funds are NEVER sent to us.
  • · Our program can use investment account funds and/or self directed IRA funds.
  • Rates:
     

Our rates are simply dependent upon the level of funding that is needed for a particular project and that you agree to contribute. The larger the projects, the higher overall total rate of return for us and likewise, the higher the rate of return for you. Our rates always begin with the quarterly printed base rate of the average CD rates as shown in the website Bankrate.com. To that rate, we add our additional rate making the net amount on the following chart:

***** FUNDS INVESTED *****

********** DURATION OF TIME PERIOD **********

Minimum

Maximum

12 months

18 months

24 months

36 months

48 months

60 months

LESS

50,000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<  +3.00%  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

50,001

100,000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<  +4.00%  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

100,001

250,000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<  +5.00%  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

250,001

500,000

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<  +6.00%  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

500,001

MORE

<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<<  +7.00%  >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

NATIONAL AVERAGE RATE>>>>>>>

2.42%

2.53%

2.64%

2.47%

2.07%

2.77%

Rates are subject to change based uoin quarterly rates on Bankrate.com quarterly index. These rates are effective for the 3rd Quarter 2018.

Tetra Homes, Inc. or its affiliates do not provide legal, accounting or tax advice. Please consult your own professional advisor.

 

Cincinnati, Our Hometown
Copyright
QWITECH

Follow Us on Facebook

Follow Us on Twitter

Follow Us on LinkedIn

Follow Us on YouTube