With thousands of transactions under our belt, we understand the Hard Money Lending business. Our investors benefit from our experience when they choose to invest in our Elite Opportunity Fund.
The Elite Opportunity Fund – A High Yield Mortgage Fund
In 2008, when Pine Financial Group was established, we only worked with individuals who were willing to invest in single notes, often called Private Money Investing or Trust Deed investing. These individuals would fund the entire deal and collect a set interest rate. If there was a payment default, the payment to them would stop. If we were forced to repossess the property, the investor ended up with the property. This strategy worked well, and Pine Financial Group grew quickly.
After about a year, we started to get feedback that investors wanted something more. More investors wanted to get involved and were asking for lower investment amounts and they wanted to feel safer, even if a borrower stopped paying. We listened and met the needs of our investors when we started our first Hard Money Lending Mortgage Fund. It was a huge success and we are now accepting investors into our fourth Mortgage Fund.
Always Know Who’s Holding The Bag
In the unlikely event of a problem with a Hard Money Loan, the investor who owns the individual note is left holding the bag. A large chunk of money is in that one investment. This can be OK if the investor is investing in multiple notes. For example, we have an investor with over $16,000,000 invested in Hard Money Loans with us. Although he is invested in individual notes, he is still diversified because he owns multiple notes. Investors with smaller amounts to invest would be taking on more risk when investing in individual loans.
Diversification Is Key
When you invest in a fund like ours, you will automatically receive the benefit of diversification because that fund is invested in several Hard Money Loans. If one investment goes bad, the other investments continue to produce cash-flow, reducing the risk on any one deal. Further, in our Elite Opportunity Fund, you get the benefit of a consistent 8% return.
Smaller Investment Needed
With individual Hard Money Loans, you will be expected to purchase an entire note. This could be hundreds of thousands of dollars. In fact, it is extremely rare for Pine Financial Group to originate a loan for under $100,000. This size of investment makes it more challenging for some investors to get involved in Hard Money Lending. With our Elite Opportunity Fund, you can get involved with as little as $25,000.