Are you interested in becoming a Private Investor but don’t know how to get started? Do you have discretionary capital and are not getting the returns you would like to get on your money? McGrover Funding Corporation has an investment platform to assist individuals and institutions that would like to become private lenders and who are seeking higher than average returns on their capital. McGrover Funding Corporation has a structured bridge loan program to offer real estate loans for individuals, institutions and investors who are seeking to borrow short term financing. By having this alternative type of financing, our private investment partners typically earn between 7.5% to upwards of 9% annually while having their money secured by real estate. Our bridge lending program never exceeds 65% of property value which allows for higher security investments for our private investors.
Who uses Private Lender Money?
McGrover Funding Corporation provides borrowers with access to capital for many reasons. We have found that the people and companies that approach us have short term difficulties and need access to quick cash. Whether it is for reasons such as IRS tax liens, renegotiation with existing loan, divorce, death, dissolution of partnership, resolution of civil case, etc, McGrover Funding Corporation can provide these types of borrower’s with short term bridge loans or hard money loans secured against their real estate.
How does McGrover Funding Corporation determines whether or not to Fund a Borrower’s Request?
McGrover Funding Corporation lends to borrowers that own residential and/or commercial real estate. We will lend up to 60% (sometimes up to 65%) of the current market value of the property. We determine the value based on certain models that we use to give the most accurate valuation of the real estate. Once we determine the value, we then look at the capacity of the borrower to repay the loan. If we determine that both the valuation of the property makes economical sense and the borrower has the capacity to repay, we will fund the loan.
How McGrover Funding Corporation earns higher than expected returns for our private lenders?
McGrover Funding Corporation lends capital at a starting rate of 7.99% annually and upwards of 12.99% annually depending on the risk associated with the real estate being used as collateral. The borrowers that approach McGrover Funding Corporation for private money are advised that the loan program is a high risk loan to our private lenders and must be secured with real estate that has enough equity in it to qualify the borrower for the loan. The loans are typically held by the borrowers from as little as 6 months to as much as three years. Borrowers make payments monthly and in case of default the property is foreclosed on and taken into our private lender’ real estate portfolio.
How does McGrover Funding Corporation protect our investors that decide to participate as a private lender?
McGrover Commercial Capital protects our investors that become private lenders by doing all the due diligence on the borrowers and the property being used as collateral. If we at McGrover Funding Corporation would not want to add the real estate to our own portfolio, then we would not want our private investors to own the real estate in their portfolio either. We make sure that the borrowers seeking the capital have the capacity to make the payments on the borrowed money and the real estate is of good value. If the borrower defaults, our private lenders risk is only 60-65% of the true market value of the real estate, allowing for upwards of 40% in equity if foreclosure is warranted. Additionally, if foreclosure is warranted, McGrover Funding Corporation will assist in the foreclosure suit and liquidation of the real estate unless our private investor prefers to hold the real estate in their own portfolio.
What type of capital vehicle do our private investors use to fund real estate deals?
McGrover Funding Corporation has found that there are many different capital vehicles that can be used to participate as a private investor. We suggest that any capital our investors intend on using should do their own due diligence and consult with their own advisors before participating in our program. As a private investor, one can use discretionary cash, equity lines on real estate, retirement accounts (structured as self directed), inheritance, pension plans, cash value of life insurance, company reserve capital accounts and pooled capital to name a few. Consult your advisor before attempting to use any of the above mentioned capital vehicles.
Does McGrover Funding Corporatioin hold the funds for our private investors?
No… McGrover Commercial Capital does not hold any of our investor’s money. McGrover Commercial Capital offer potentially higher returns, secured by real estate for individuals and companies that are seeking to earn higher returns while limiting risk associated with the investment. As borrowers approach us for capital, we submit a request via email or phone call to our investors who decide to be a private investor and all real estate transactions are based on their risk/reward profile and geographical area. We determine our private investor’s interest in participating in any and all of our real estate transactions. If our private investor wants to participate in the real estate transaction, we request that the private investor commit to providing the capital five days prior to day of closing.
How can I get started as a private lender?
To get started as a private lender, please complete the form below. One of our executive team members will call you to discuss our program and or answer any additional questions you may have.