Whole Loan Purchase Program
RealtyMogul.com, the online marketplace for real estate investing, announced that it had begun a program to offer investors the opportunity to invest in whole loans on commercial real estate. The program is aimed at those investors interested in participating in business-purpose real estate loans on a larger scale. Investors can now be named directly on the mortgage or trust deed involved with the security for such loans.
“We’ve had so much interest in our debt securities related to real estate loans, and we view this new approach as one more way of satisfying this demand,” said Jilliene Helman, RealtyMogul.com’s CEO.
“This new product offering allows our larger investors to purchase some loans in their entirety, and to get more comfortable with the investment by being named directly as the mortgagee or beneficiary on the actual security instrument of the loan,” continued Ms. Helman. “Our preliminary discussions with some investors indicated that many would be very interested in this product, and in fact the response to this opportunity has been overwhelming. While our current fractionalized loans are fantastic for offering investors the ability to invest in small amounts in opportunities all across the country, creating diversification, this new program allows investors to use their own credit lines and warehouse facilities to leverage the purchase of the loans and enhance their overall yield. We’re thrilled to have found yet another way to serve the real estate investment community.”
The loans currently available are business-purpose to real estate investors, often those who are renovating a property. The loans are typically secured by a first-position lien and usually feature interest rates in the 8-11% range with 12 month terms. RealtyMogul.com will generally continue to act as the servicer on such loans. The investor will be listed as the mortgagee or beneficiary of the security instrument (either a mortgage or deed of trust, depending on the state) and will be the beneficiary of the hazard insurance placed on the property.
Returns are not guaranteed, and past performance is not indicative of future results.
RealtyMogul.com is an online marketplace for real estate investing, connecting borrowers and sponsors to capital from accredited and institutional investors. Through an online website, RealtyMogul.com gives investors tools to browse investments, do due diligence, invest online and have 24/7 access to an investor dashboard to watch how their investments are performing.
RealtyMogul.com partners with private real estate companies and investment-purpose borrowers to provide these companies with access to a broader capital pool, as well as tools for investor communications and distributions. As a result, the platform functions as a bridge between investors and real estate companies looking for funding.
For more information on how to become a real estate investor or to seek capital through the RealtyMogul.com marketplace, please visit www.RealtyMogul.com.
The projections or other information regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.