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How does the process work?

Let’s look first at how your bank makes money?

—They take in money on CD’s, savings and other accounts. (Your Money)

—They then loan the money out at a higher rate of interest to borrowers to buy houses and other investments.

 

How do private mortgage investors make money?

—Private investors put money into escrow accounts with a title company.

—Real estate experts locate properties to purchase at huge discounts.

—The property is purchased with a formal closing providing the investors all of the legal documents including a deed on the property and a first mortgage note that is secured to the property at a high interest rate.

—Call to learn about interest rates that have been earned with current and past investors.

—The home is rehabbed and sold for a quick profit and the note is paid off.

—The process is repeated.

—With private investors, real estate experts are able to cut out the middleman (the Banks) and make quick cash purchases.

Payment Program

How can YCBTB buy houses so far below market value?

—Since 1986 YCBTB has gained experience with hundreds of transactions and developed important relationships with key players within the real estate community.

—They understand the process, the paperwork and the timing.

—They know where to look, what to buy, what not to buy, how much to pay and how to renovate it.

—They keep a close eye on the market looking for trends and activity.

—They have become experts with identifying opportunities.

—Their specialty is distressed or bank owned properties that usually need renovation.

—Banks typically will NOT lend on these houses which means that ONLY CASH BUYERS THAT ARE READY TO CLOSE WILL GET THE DEAL.

—Their whole purpose is to find a good deal and make a good profit.

——They create value by taking ugly & out dated vacant homes that are eye sores and put them back to gorgeous top of the line homes.

—When they make money, the investors also make money.

—Win-Win for everyone.

 

How are investors protected?

Private mortgages (also called hard money loans, trust notes, private notes, etc.) are, in our opinion, much safer than paper investments because they are secured by real property. In this way, if the mortgage is ever in default, the private mortgage lender sells the property in a quick sale to get their money out of the investment. The property is backed by title insurance and hazard insurance as additional levels of protection. These multiple levels of protection cannot be found in any other investing instrument.

Documents Securing Investment

—  Promissory Note (Example Promissory Note)

—  Mortgage (Example Mortgage Note)

—  Hazard Insurance Policy

—  Title Insurance

—  Appraisal by licensed appraiser

The BIGGEST concern, protection of principle

—  YCBTB #1 Rule: Money borrowed is capped at 65% loan-to-value (LTV) of After Repair Value (ARV)

—  This gives additional security because properties are not over-leveraged.

 

Keeping risk under control

The fact that private mortgages are an incredibly stable investment doesn’t completely negate all risk. Any investment carries some risk.  If that’s what you’re looking for, you can’t even find it in a U.S. government investment! Why? Because often those investments provide a rate of return that doesn’t even keep up with inflation. Though treasury bonds and other government investments are the safest around, you’re still taking a purchasing-power risk with them.

Certainly there are no guarantees when investing in real estate. What you should be after is a solid return for a given amount of risk.

“What if the investor doesn’t stay current with the interest payments?”
That’s a good question, and it’s the same one the banks deal with. If an investor cannot keep up with the interest payments, then you as a mortgage note holder are able to foreclose on the property. Because we only deal in situations where the property is worth substantially more than any loans, there typically is way more equity in the property to cover the loans, once the property is sold.

How do I know I can trust you?

The good news is that you don’t have to take a “leap of faith” in this program! Everything’s visible: You get to learn about the property you’ll be loaning on. You are given all the facts about the property’s value, comparable properties in the area, the proposed use of the loan proceeds, etc. Only when you have all the facts do you decide on investing.

You know exactly which property you’re loaning against. Compare that to buying a mutual fund, where you have only a vague idea about what the investment manager has put your money in.

 

Who’s NOT right for these investments:

1. You’re looking to score a “grand slam”. We’re shooting for a generous return for a reasonable risk, and not for some “snake oil” story of instant riches.

2. You can’t bear the thought of “risk”. As we explain elsewhere, your investment is covered with ample collateral. But of course that does not make it totally risk free. Should a foreclosure occur, the good news is you now may potentially receive much more than your investment back; the bad news is you may have to wait through part of a market cycle to receive it.

3. You need the money REAL soon. If your kid is going to college in the fall, then this is not your investment. You should be able to put this money aside and forget about it until the renovation project ends.

4. You haven’t invested before. “First timers” are more nervous than most. They typically should invest in things like mutual funds that have a daily value in the newspaper, and come with plenty of letters and website information from the fund manager. It may take a bit of time to “graduate” to these private investments.

Who IS right for these investments:

1. You’re looking to diversify. If you already own other types of investments, then private lending is definitely worth looking into. That’s because having all your investments in one type (growth mutual funds, for example) often means you have your “eggs in one basket”. Risky. Having some of that money spread out in very different investment types can actually reduce your overall risk.

2. You have your primary investment needs taken care of already. This is money you can invest without drawing upon it soon. That will help you, because the longer you can have your money off and working for you, typically the higher returns you can generate.

3. You’re not the nervous type. Let the “nervous Nellies” own stocks and sweat what the news will be each night. If you’re satisfied with only periodic updates on how your investment is doing, not only will you sleep better, but your investment choices will be much broader.

Real estate is “Under the Radar”

The beauty of real estate lending is it “flies under the radar” of the big firms. They can’t make money by effectively mass packaging these loans, so they–and their high fees–don’t become involved.

Don’t misunderstand us: There’s a place for mutual funds, stocks, and other investments. In fact, we recommend that you learn all about those investments, and consider using them for some of your money.

Just be aware that you may want to explore investing the way many extremely wealthy individuals and institutions do: by making loans on real estate.

The way investments used to be done

Oddly enough, these private lending investments aren’t new at all: Before mass-produced and mass-marketed investments came about, you would have private individuals work with each other to agree on the terms of an investment. They both would know the property in question. One person would do the construction or renovation, and the other helped to fund the project, in return for interest payments.

When some of these lenders discovered that they liked to make such loans over and over again, they became banks!

We suggest that you contact us for more information on the specific types of opportunities we have available. You can be sure that we’ll treat all your information with the utmost confidentiality; we will never sell or give your name to some other business.

Join the exclusive club

As a Private Mortgage Investor; you join an exclusive and discreet club of investors that do not accept the “passbook savings” levels of interest on their money. They want to be handsomely rewarded, and want plenty of security backing up their investments.

Summary of YCBTB Private Lending Program

Investors have the choice of monthly interest only payments or 1 interest payment at the closing of sale of the house.  Call to learn about current private mortgage investment interest rates.

The minimum amount for investments is $40,000.00.

The investment is guaranteed with a Promisory Note and 1st Mortgage.

The maximum loan-to-value (LTV) on a property is 65% after repair value (ARV).

What investment opportunities are currently available?

Call or send an email to request the list of current investment opportunities.

 

Benefits of Working with YCBTB

 Working with YCBTB is a logical, secured way to minimize your risk in private mortgage investing. We’ve got decades of experience in real estate investment. We’ve completed deals on hundreds of properties and have analyzed thousands more.

 We’ve been working for years to come up with a system that allows the average investor to invest in solid and secure private mortgages without the need for years of personal education in the real estate investment field.

I want to get involved, where can I find money to invest?

Many of our investors only had a small amount of liquid assets and needed to learn about utilizing other sources for private mortgage investing.  Many of my private mortgage investors saw the incredible value in our opportunity yet were not certain how they were going to provide the funding.  Many of these same investors were sitting on investment accounts yielding very low returns.  That is past tense, now they are doubling their money every few years!  The vast majority of investors (including my own partners) with IRA’s and 401K’s had NO idea that they can CONTROL their own money in these accounts.

Do You Have Money in IRA’s, 401K Pension Plans?

—  You can self direct your IRA (Traditional/Roth) or pension plan.

—  Your returns stay tax deferred or tax free.

There are a whole group of investments that the government is just fine with you putting in your IRA

Here’s the truth:  You CAN invest in real estate through an IRA.

Did you know you can invest in the following types of real estate through a truly “self-directed” IRA:

  • Raw land
  • Single-family homes
  • Apartments
  • Mobile Homes
  • Commercial Property
  • Real estate notes
  • Mortgages
  • Tax liens

Our real estate buyers find it very exciting with having real estate investments grow tax deferred in a self directed IRA with after-tax dollars.

Remember, we’re not your attorney or tax advisor and suggest that you check with them about any investment opportunity.

Click here for more information on Self Directed IRA/401K’s providers and guidelines.

Getting started, the next step is yours!

Now, we’re able to offer our turnkey operation to you.

With YCBTB’sturnkey system, it really is that easy. Complete an application and send it to our team.

After we receive your application we will schedule a time to speak with you on the phone to discuss your final questions and get you started.

This is not a specific offering, an offer to sell securities or an invitation for offers to purchase securities.
Securities may only be sold by exemption or registration.

Thank you for your interest in working with You Can Be the Bank. YCBTB does not represent that the offerings are suitable or appropriate for all potential investors or clients. The fact that YCBTB has made the data on this offering available to you constitutes neither a recommendation that you enter into a particular transaction nor a representation that any offering described on this offering or on our website is suitable or appropriate for you. Some of the offerings described on our website or in this offering involve risks, and you should not enter into any transactions unless you have fully understood all such risks and have independently determined that such transactions are appropriate for you. This offering, provided only for current and prospective clients of YCBTB , does not intend to provide investment, tax or legal advice and you are responsible to seek advice from your own business advisor, attorney, tax advisor, or accountant. We look forward to the opportunity to work with you.