Presented by Bamboo Trail Investments
This guide has been written with the intent of providing useful information, tips, and strategies to individuals who are considering entering into private lending transactions secured by real estate. This guide assumes a basic level of understanding of the terms, processes and documents involved with private lending transactions.
DISCLAIMER: Please carefully consider investment objectives, risks, and associated costs or expenses before investing. Real estate investments are not guaranteed or insured and past performance is not a guarantee of future performance. Please ask questions and ask for more information before considering any investment. We are not a law or tax firm, and we do not provide legal or tax advice. Please consult professionals for these types of services. The materials in this guide should be used for general guidance and informational purposes only.
Investing Strategy
We borrow private money over a 60 month term to purchase very low loan-to-value properties. We then sell houses, as-is, to lease option buyers who are interested in our owner-financing program. This provides instant profitability, and equity cushion in the case of further market downturn, and automatic wealth building.
A Solution to the Housing Crisis
Our company offers homeownership programs to credit challenged buyers who cannot qualify for a bank loan on their own. This service allows families to become homeowners today when they could not have otherwise.
How do you benefit from private money lending?
Higher Returns
We pay you 12% interest on your investment. Often, we borrow small chunks of cash to buy investment properties so there is less risk involved.
Fixed Rates
We'll give you an interest schedule showing exactly how much you've earned at any given time during the investment term. Even if the market fluctuates, your rate of return does not change.
Investing Strategy Explained
Acquisition - We negotiate with a seller to purchase their home at a discount and begin our due diligence on the property.
Presentation - We send a New Opportunity Announcement to all our Private Lenders explaining the specifics of the deal including interest rate, term and our intentions for the property.
Commitment - The Real Estate Purchase Contract is sent to title company. The title search and the necessary documents are prepared. If you decide the deal is right for you, you start making the necessary arrangements to have the funds delivered to the title company before the date of closing.
Funding - Your funds are wired or delivered directly to the title company and you are given a receipt for your deposit. You start earning interest that day.
Closing - The title company ensures that all documents needed to close the deal have been submitted by the seller, buyer, and private investor. The transaction is recorded at the county recorder's office and funds are disbursed. You will receive copies of the promissory note, mortgage, title insurance policy, and hazard insurance policy from the title company.
Frequently Asked Questions
Can I use my IRA or 401K to lend from?
Absolutely. In fact that is what some of my investors do. You must be in control over where your investments go from your IRA or 401k, and you can take any IRA or 401k that you own and roll it over into a self-directed IRA. There is no penalty for doing this because you are not taking a distribution, you are simply changing the Administrator to one that allows you to self-direct where the funds go. Doing it this way, you can make all of your gains tax deferred without counting on someone else to get you 8%-12% fixed returns day in and day out. Seek a custodial company that allows you to be in control of your investments.
Is Private Lending really a safe investment?
In my opinion it is much safer than the stock market because you have no ups and downs to worry about. You might make money in the stock market one month or one year, and then get wiped out the next. When it's all said and done, most people get returns that barely keep up with inflation. By investing in real estate, you won't be gambling on companies that you have no control over or know little about who is running them. Your investment loans are safely secured by real estate. You will get fixed returns that never change, there are no fees or commissions, no early withdrawal penalties, and there will be large spreads or hedge factors of equity versus your investment. Remember, you do not have to put all of your investment funds into real estate; but it's a great place to get consistent, predictable and reliable returns.
I am Adam Van Sickle. I've been involved in commercial and residential real estate since 2017. Implementing this protocol that provides low-income earners a path to homeownership and home stability, and investors a 12% return on their investment guaranteed by real estate has become my passion because EVERYBODY WINS! My wife, son, and I live in Aztec, NM where we love to hike, bike, ski, spend time with extended family, and explore ancient ruins of the Southwest.
Get in touch at bambootrailinvestments@gmail.com | 505-427-3708