There are an estimated 9 million non-performing loans in the U.S. today. Great news for note investors.


OUR EXISTING NOTE PROGRAM

What if a property could be purchased for 20% of it's value? There might be pretty good potential for profit wouldn't you agree?

That's exactly the case with non-performing loans (NPL's for short). Our program allows you to tap into this massive and highly profitable segment of the real estate industry. Using our expertise and management, we buy notes at steep discounts and are able to generate above average returns for our lenders.


WHY NON-PERFORMING LOANS
  • Security - "I'm not so concerned about the return on investment as the return of my principle," Warren Buffet. All notes are secured by the hard asset of the underlying real property with a 1st Trust Deed.
  • Discount - We control assets for pennies on the dollar.
  • Returns - Ask most financial planners and they say 8% is great. Great if you can get that year in year out but not likely these days. Our lenders enjoy interest in the 15-25% range.
  • Term - Shorter terms which can be as quick as 6 months and rarely longer than 36 months. Typical time frame, 12-24 months.
  • Options - Notes provide multiple exit strategies such as loan modification, deed in lieu, foreclosure or resale of the note. Multiple options to maximize profit.
  • Cash Flow - In some cases before the note investment exit has been reached, they will generate monthly cash flow from borrower mortgage payments or rental income.
  • Market - Realty Trac reported that more than 13% of all mortgages are under water. Commercial banks say they have $160 to $170 billion of distressed single-family assets on their books. Add in at least that much from FHA. The opportunity is very large.
  • Barriers - Unlike buying a traditional brick and mortar investment property, note acquisition is not as easily accomplished. The good news is, unlike the flipper rush of the last real estate boom that eventually lead to shrinking inventory and investor profits, the higher barriers to entry in the note market will protect it from the heard mentality.
  • Funding - Lenders can use funds from self-directed retirement accounts to grow their principal tax deferred or even tax free.



LEVERAGING YOUR INVESTMENT FUNDS


WHAT’S BETTER THAN INVESTING IN A NOTE?

Investing in multiple notes to give you more cash event opportunities and lowered risk. That’s the advantages Powerhouse note funds give you. Each $250,000 fund typically has 6-10 notes with your investment securing a profit share in each one. Invest $25,000 and you receive a 10% profit share, $50,000 and 20% profit share and so on. Powerhouse note funds allow even smaller investors, minimum $10,000, to enjoy all the benefits of a large note portfolio. And our proprietary, online Note Dashboard allows you to track the progress of each note as we work them to profitability. For individual clients with $250,000 or more to invest in notes, we create and manage private funds.

Powerhouse is currently offering two investment fund types:

1) Mixed Fund of up to $250,000

  • Consisting of multiple, unrelated individual investors or entities contributing a minimum of $10,000.
  • Designed for smaller investors who’d like to take advantage of the opportunity in the note market but don’t have the funds to create their own private portfolio.
  • Investors receive a percentage share of profits of all the Notes in the fund based on their contribution percentage to the Mixed Fund pool.
  • Secured contractually by property first trust deeds.

2) Private Fund of $250,000 or more

  • Consisting of a single investor or related group of investors or entities contributing a minimum of $250,000.
  • HGM buys, manages and sells notes exclusively for the Private Fund investors portfolio.
  • Secured by recorded property first trust deeds in the investors or investor entities names.

RETURN ON INVESTMENT EXPECTATIONS

History has shown the annualized ROI on Non-Performing notes has ranged from 20% to 50% on average. The deciding factors on the ROI are generally how long it takes to get the note to generate cash, whether the note is sold as performing or is kept for long term cash flow, or if the property is foreclosed on and whether it’s sold wholesale or retail. We believe a conservative estimate of 20% annualized ROI puts expectations in the right place and allows for proper planning, but higher ROI’s are very likely.

INVESTMENT FUNDING OPTIONS

Personal cash, investments through LLC, LP or Trust, foreign investment through Regulation “S” offering, and investments through self-directed IRA’s are all acceptable.

EMPHASIS ON TRANSPARENCY

All investors have secure, 24/7 access to the Lender Note Dashboard where all expenses, revenue and profits are tracked. Contact us for more details as well as how you can use IRA funds.



Very simple...earn 8-11% interest on fully collateralized direct loans.


OUR NEW NOTE PROGRAM

Many times, potential home owners have plenty of cash but because of various circumstance, can't go the traditional lending route.

Our direct lending program, commonly known as Hard Money Lending, allows private individuals to safely lend money to borrowers while enjoying better rates of return on their capital as opposed to traditional investment opportunities.


WHY HARD MONEY LENDING
  • Cash Flow - Need a regular revenue stream from your capital? Hard money loans pay interest payments back to lender every month.
  • Security - Lender principle is not only fully collaterized by real property with a 1st Trust Deed. Loan to value is typically 50-70% with the borrower providing the difference in cash to acquire the property.
  • Underwriting - all New Notes are fully underwritten by loan officers with borrowers screened and verified, property inspected and appraised, and title checked and insured through escrow.
  • Returns - Overall returns are generally 8-11%.
  • Term - Shorter terms which can be as quick as 6 months and rarely longer than 36 months. Typical time frame, 12-24 months.
  • Funding - Lenders can use funds from self-directed retirement accounts to grow their principal tax deferred or even tax free.



SUPERCHARGE YOUR IRA WITH NOTES!


LEVERAGED GROWTH. PROTECTION AGAINST INFLATION AND MARKET VOLATILITY

Up and down stock market, measly savings returns, where do you put your IRA funds to get a great rate of return without the downside risks? Notes secured by real property may be your answer. We’ve worked with many major self-directed IRA trust companies to help our investors unlock the potential of notes for their IRA accounts and we can help you too.

Contact us to find out more info on how you can use your IRA funds to invest in notes.

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