INVESTORS
High Rate of Return
PMI Funding Corporation is in the business of trading in trust deeds, mortgage notes and equity loans. For the past 22 years, PMI has represented investors who have invested in notes secured by residential
(non-owner occupied) and commercial real estate. PMI is based in Albuquerque, New Mexico. PMI offers mortgage note investments secured by properties in New Mexico, Arizona, and Colorado.
If you would like to diversify from CDs and the stock market, this is an alternative investment. Many retirees enjoy the monthly income of interest only payments, leaving the original principal in place.
PMI
represents borrowers who want to borrow funds secured by
commercial properties. Our investments offer a return of 6 to 10 percent and higher with short-term bridge loans. Most loans have a one to five year term and pay monthly interest payments. See our
chart below stating a compounding effect.
It is our routine course of business to research each investment to insure its security. PMI requires a completed loan application, credit report
when applicable, proof of income, title search, hazard insurance and appraisal. All loans are serviced by a licensed servicing company located in Albuquerque and Phoenix. We monitor all accounts and assist with any questions and problems that may arise.
Most of our loans are a maximum
of 65-70% of the property current value. If a borrower/payor
fails to make their payments, and the property is foreclosed on,
there is enough equity to sell the property and recover the
investment plus make some profit.
If you would like to be on PMIs mailing list for any future offerings or have any questions, please contact us. All contact information is kept
confidential.
PMI Funding Corporation
505-275-2244
rheinze@pmifunding.com
YIELD ON INVESTMENTS
Let's begin with the premise that your money is
invested in a very secure place and that you are happy with the
return on investment.
Did
you know that a 35 year-old will have twice as much spending money
at retirement if he or she can increase yield on investment 5% to
6%. Most people don't realize that a small increase in yield has a
disproportionate effect on the retirement nest egg.
TWICE
AS MUCH! Live twice as well.
Now
many people who are not investor-savvy are thinking TWICE AS MUCH
RISK. But savvy investors know that high yields are attainable in
some carefully considered investments without necessarily increasing
risk. Agree?
Greed is an amazing emotional
temptation. If someone offers a high return of let's say, 25%,
secured by a promissory note and their good name, you may want to
reconsider. If it is too good to be true, it probably is.
Some investors may say that 8-10%, or maybe a 12% return is too good
to be true. A 8-12% rate of return for private money has been
the norm for years across the country.
EXAMPLE: A prospective borrower
calls PMI Funding requesting to borrow $50,000 secured by vacant
land with utilities valued at $100,000. (This would equate to a 50%
loan-to-value or LTV). We would to our due diligence to verify
the current value. We would verify the borrowers' ability to
make the required monthly payments and what their exit plan is at
the end of the agreed term. We would order a title
search and commitment from a title company to verify any
encumbrances and liens and property taxes that need to be paid.
At closing, the investor delivers their funds
to the title company. The title company is requested to issue
a Title/Lenders Policy to the investor insuring that the new
mortgage and note is in "first" position. After closing, the
mortgage and note and a release of mortgage is placed with a
licensed servicing company. (We like Weststar Escrow located in
Albuquerque, NM - www.westloan.com)
The borrower will make their payments to the servicing company and
the payments can be mailed or electronically deposited in the
investor's account. The servicing company keeps a daily accounting
on accrued interest and balances. They also send a 1099 to the
investor.
An example of the terms....
$50,000 note amount
8% per annum
$ 333.33 interest only monthly payment (borrower can pay an
additional amount if they chose).
60 month term (borrower may refinance or sell the property on or
before the 60 month term)
Note: Investors may use their IRA to
invest in real estate notes.
______________________________________
A
one-time investment of $10,000 can result in a retirement nest egg
of $198,373 if one is able to attain a 10% yield consistently from
the age of 35 years to 65 years of age.
Note
the examples below:
Rate
Dollars 5
yrs 10 yrs
20 yrs
30 yrs
5%
10,000 12,762 16,288 26,532
43,219
10%
10,000 16,105 25,937 67,275
174,494
15%
10,000 17,623. 31,058 96,462 299,599
Rate
Dollars 5
yrs 10 yrs
20 yrs
30 yrs
5%
100,000 127,628 162,889
265,329 432,194
10% 100,000
161,051 259,374 672,749 1,744,940
15%
100,000 201,135 404,555 1,636,653
6,621,177
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