Frequently Asked Questions

General

What is Private Money?
Private Money are funds from private investors. These high networth individuals entrust us with their money to fund mortgage loans. This investment type is a way for these people to diversify their portfolios.

How is Prime Capital Group licensed?
We are licensed by the California Bureau of Real Estate and Nationwide Mortgage Licensing System

Does Prime Capital Group fund properties outside of California?
No, we only fund mortgages on California properties.

Brokers/Realtors

Why would I work with Prime Capital Group?

An ever growing list of brokers and Realtors has discovered how easy it is to do business with us.

• Unlike institutional lenders, we can fund a loan and you can get paid in 5 business days.
• Typically, all you need to provide is a loan application and a borrower’s authorization
• Unique Financing Programs and Property Types for you to earn more business
• We make your client happy by delivering what we promised when we promised.
• We are professional, diligent, responsive and focused on your success.

If I bring a borrower to Prime Capital Group, how do I get paid?
You must be licensed as a California Real Estate Broker. Subject to executing our Broker Agreement, we pay you as the cooperating broker.

What are your rates?
Our funding does not come from Wall Street or the Federal Government. Instead, we work with high networth individuals to lend these funds to our borrowers. For their risk, our investors expect to earn between 7.9% and 12.9% per year.

Borrowers

How is Prime Capital Group different from a “regular” lender?

• Simple Application Requirements
• No Tax returns or Bad Credit or No Credit – OK
• No Prepayment Penalty
• Exclusive In-House Financing
• Unique Financial Programs and Property Types

How do I qualify for your loan?
We only have 2 criteria: the equity in your real estate property and your ability to pay your obligation.

What are your rates?
Our funding, however, does not come from Wall Street or the Federal Government. Instead, we work with high net worth individuals to lend these funds to our borrowers. Rates vary based on each loan scenario, call and speak with one of our loan officers for the right quote. Our investors expect to earn between 7.9% and 12.9% per year.

Investors

What is Trust Deed Investing?

• By investing in a Trust Deed, you become the lender on a mortgage secured by a California property.
• Your name will be recorded with the County as the beneficiary of the Trust Deed.
• Each month, the borrower sends the mortgage payment to us for processing, and we then forward your proceeds to you.
• Read the official California Bureau of Real Estate publication “Trust Deed Investments – What You Should Know!!”
• Read the Wall Street Journal article on Private Money investing “Investors Who Do a Few Mortgages on the Side”
• Watch the Wall Street Journal video on Private Money investing “Investors Who Do a Few Mortgages on the Side”
• Read the Wall Street Journal article on Private Money lending “Explaining the Methods of Private Money Lenders“

Why would I invest in Trust Deeds?
Trust Deeds are a compelling alternative investment which provide attractive yields and passive monthly income as part of a risk-averse strategy.

How am I vested?
You instruct us how you want to be vested. Our loan documents including our note and deed of trust will feature your vesting.

Who do I fund with?
You will wire your funds directly to the insuring title company.

What is the minimum investment?
$50,000 – our offerings are available as multi-beneficiary (fractional interest portions) or whole-note investments.

What is a typical yield?
Our loans yield between 7.9% to 12.9% depending on the collateral. On average, our investors’ portfolios yield 10.7%

What servicing do you provide?
We provide comprehensive loan servicing including: sending statements to borrowers and investors, collecting payments from borrowers and disbursing earnings to investors, monitoring property taxes and insurance coverage, managing the foreclosure process, completing year-end tax reporting and responding to borrower and investor inquiries.

How much do you charge for servicing?
We advertise all our investment with the “Investor Yield” which is the net rate you will earn. The note rate on the investment is slightly higher. The difference – or spread – compensates us for our servicing activities. There are no other charges.

How do I start investing?

• Complete your initial Trust Deed investing research, including reading the California Bureau of Real Estate publication “Trust Deed Investing – What You Should Know” and any other personal research you may feel necessary.
• Review our available Trust Deeds. Choose an investment appropriate for you. Call or email us to discuss and ask for any other information you may need from us.
• You will receive a complete “due diligence package” containing the borrower’s loan application, the preliminary title report, the credit report and the appraisal.
• You wire your funds directly to the insuring Title Company on the appropriate day.
• After the loan funds and records, your loan servicing account will be activated, your interest due at closing check is mailed, and we will distribute your earnings via check or ACH. You are now on your way to building a Trust Deed investment portfolio!