Our Philosophy Win-Win-Win
Private Lending and Hard Money Lending
The Note Shop is a private mortgage lending company based in Littleton, Colorado that lends through its subsidiaries TNS Loans and Hard Money Mike.
The Note Shop and all other subsidiaries were founded with the vision of providing financing solutions for real estate investors and better returns for those lending to them. The company’s mission is to provide private mortgage loans to investors who may not qualify for conventional bank financing. We strive for a Win Win outcome on every loan funded. We want to see the lenders win through better more secured returns, the real estate investor win with financing to update homes and The Note Shop and its employees to win by helping both.
WHAT WE OFFER
Plain and simple, The Note Shop offers great service coupled with integrity to individuals seeking to profit from real estate lending. They can profit either directly as a “hands on” investor looking to borrow funds to secure and rehabilitate distressed properties or indirectly as a lender of those funds through private mortgages.
We offer common sense lending with secured returns aimed at maximizing interest rates for the risk model selected. These higher returns are secured with real estate in Colorado and other states utilizing our experience and knowledge.
We maintain the following business rules in order to create a lower risk loan:
1. Loan funds are to be used for business intent only (no owner-occupied residences)
2. All loans are valued based on a 90-day quick sale price
3. One of our associates or a trusted advisor will do a property check on all properties
4. All loans will close through and with title insurance
5. Lenders will be in 1st lien position and have personal guarantees from the borrower(s)
What is a Private Mortgage
Private Mortgages are used by real estate investors for fast funding of opportunistic purchases as well as rehabilitating and securing property. These are short-term loans made on the strength of the investment property whether that strength comes from a low loan-to-value ratio, a high income potential or a combination of both. Private mortgages are backed by a recorded lien and may be backed by other collateral and personal guarantees as well. These loans offer higher investment returns compared to conventional mortgages, offer more security for the lender.
While banks today must adhere to strict guidelines, private mortgages go back to the days when lenders offered personalized service with terms tailored to fit individual needs and situations. The main reason why investors use private mortgages is that they are quick, no nonsense loans that make money.
Real estate investing is one of the most common uses of private lending in the form of private mortgages. Investing in real estate is a cash-intensive financial activity. In order to take advantage of ongoing projects, investors often require more operating capital than conventional banks are prepared to lend. There are many other reasons a real estate investor uses private mortgages. Some of these are:
• Timing. When a quick close if required, typically two (2) weeks, an investor may need a short-term loan until they acquire permanent financing. An investor may plan to sell the property quickly; the bank may fund the loan but charge high penalties for early payoff. It may also be because the investor is approaching contract deadlines on a property with multiple bids and backup contracts; there may be a cash incentive for a quick close; the property may be approaching deadlines in the foreclosure process; etc…
• Value. The investor may be able to purchase property at a substantial discount and may need maximum funding for rehabilitation. Banks will only lend on the lower of purchase price or appraised value.
• Property Status. The investor may be purchasing a property in need of substantial repair that will not pass a bank’s strict and, often, inflexible standards. Private mortgages allow time to rehabilitate the property and obtain permanent financing.
• Purchase Terms. The seller may REQUIRE a cash offer or give incentives for cash offers.
• Mortgage Purchases. The investor may wish to purchase the property or deeds on the property while in foreclosure. Due to the title status during the foreclosure process, banks will not lend on property in foreclosure.
• Borrower. The borrower may have their own reasons (i.e., they may not like banks).
• Flexibility. Private mortgage terms are able to be tailored specifically to individual situations whereas banks must adhere to strict and flexible guidelines.
Real estate investors’ main reason for using private mortgages is they are quick, no nonsense loans that make them money.
PLEASE CONTACT MIKE AT 303.539.3000 WITH ANY QUESTIONS OR EMAIL HIM AT MB@TNSLOANS.COM