Private Lending With Us
Dear Investor,
TopDollar Capital LLC buys several houses each month and has been doing so since 1999.
When we pay cash for a house and get a steep discount, we usually include private lenders instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield when we use their money to fund our new deals. This is our business model and it works well.
Maximum loan to value is 75%. That means we will borrow up to $75,000 on a $100,000 property. The money we borrow is secured by a 1st note and deed of trust (mortgage). Our investor gets 10.00% interest. Monthly payments include principal and interest, or interest only, depending on your investment needs.
Interest only payments keep 100% of your principal working for you during the whole investment term. Most loans have a balloon payment due in 1 to 7 years. The term is decided by you. You can also cash out before hand without any penalty. Banks do not even offer this on their low yielding CD’s.
Sometimes we borrow offering a 2nd deed of trust. For example, if there is a first mortgage for $50,000, then we can offer our investor a second mortgage of (up to) $25,000. In the case of a second position, we pay 13.00%.
All private lenders get:
- A Promissory Note
- A Deed of Trust recorded against the property
- Added on to the hazard insurance as the mortgagee
- A copy of any appraisals or market analysis reports
- Lender’s title insurance
We pay all costs involved to close the transaction. There is no cost to you as the investor.
Before you invest, we would first discuss how much of your capital you are looking to commit and for how long. We would then look for a deal that will meet your criteria. Once I locate the right property, I will call you, give you all the details and then you decide whether to pass or play. There's never any obligation until after you approve the deal.
We never co-mingle or pool funds together. One investor... one note and one deed of trust. This makes your investment even more secure.
When you decide on a deal, a closing agent at a local title company will be in contact with you. That agent will make sure everything is done correctly just as if you were a large institutional bank. We never accept your funds directly.
For some investors, we can offer to sell existing notes secured by real estate at a discount to yield 13-18%. These types of deals are less common but opportunities to buy discounted notes occur now and then. Discounted notes are great investments for retirement funds that are either tax-deferred or tax-exempt. Discounted notes would require further explanation regarding risks but we would walk you through the whole process. Our company invests in discounted notes on a regular basis.
All the houses used as collateral will be located near Denver, Colorado in Jefferson, Denver, Douglas, Boulder and Arapahoe counties. We occasionally have deals near Breckenridge Colorado if that is your preference.
Most of my private lenders currently include many of my family members, seasoned business contacts, and previous sellers I bought property from. Only recently have I opened this opportunity to others visiting our website.
If you have funds in a retirement account (IRA, ROTH or 401k), you can use them to invest. The IRS requires the use of an approved custodian to qualify for tax-deferred or tax-free gains. I will be glad to point you in the right direction and how to find out more information on approved custodians.
To learn more, or to be added to our private investor list, please call Kevin at 720-334-PAID (720-334-7243) or submit the form located on this website. Your questions are always welcome.
Sincerely,
Kevin Eaton
President, TopDollar Capital LLC
Denver, CO
