borrowers
What documents do I need to obtain a private money loan?
PCI provides real estate financing EXACTLY like a bank does, however, we do not need as many papers as do institutional entities. Here’s how we start:
Loan application
2-3 bank statements
Brief description of the real estate being used as collateral.
How long does it take to fund a private real estate loan?
Most requests for loans are funded between 7-10 days. More complex transactions can take as long as three weeks.
Where does the money come from for my loan?
All of our funds come from our own accounts or private individuals who rely on PCI to “package” the loan.
The rates seem high for private money. Why is this?
Admittedly, the mortgage rates are higher using private lenders. Private lenders are not as picky and often overlook matters that banks don't, such as credit, condition of the property, loan size and general qualification. The private lender is mostly concerned with the “protective equity” in the pledged real estate.
Can loans be requested directly to you or is a broker required?
PCI is a licensed broker (CDRE # 02029198) as well as direct lender so can represent each borrower directly.
What is your minimum loan amount?
PCI will do loans from $50,000.00 - $5mm. PCI funds loans as FIRST and SECOND trust deeds in the state of California
Investors
Is trust deed investing safe?
Done properly and with the correct assets as collateral, TRUST DEED INVESTING, is on par with the safest investments in the United States that deliver predictable yields with collateral.
What type of collateral secures the investment?
PCI spends most of its time and resources evaluating the collateral. The best collateral is that which has significant equity in it and that is cash flowing: Multi residential apartments, industrial buildings, supremely located land such as a parking lot in downtown Los Angeles.
What happens if the borrower does not pay my monthly payment?
PCI engineers all of its investments so that the investor is protected against default. Like a bank, PCI relies on the large amount of protective real estate equity to guard against loss. If the borrower defaults, our legal team goes into action and the real estate is foreclosed upon. The real estate may become a newly acquired property by the investor. Note: there are some private investors that lend for the specific purpose of foreclosing and getting the property through foreclosure. PCI does not lend in this manner and only lends to receive a monthly coupon.
How long are the loans made?
The term of the loan depends on how long the borrowers want the term. Most loans go from 6-36 months. Loan terms typically are 24 months.
Are IRA and retirement monies allowed to invest in real estate trust deeds?
Yes, self directed IRA capital qualifies.