Real estate historically has been one of the safest investments you can make, second only to government bonds or FDIC insured CD’s, and we all know those yields are at record lows today.

Our 1^st lien mortgage note investment program gives you the confidence in a conservative investment offering excellent yields in today’s market. It gives you piece of mind knowing your investment is secured by a sound single family residential real estate investment.

We act as a mortgage broker by matching the borrower up with an investor. All 1^st lien mortgage notes are at a maximum of 65% of the fair market price of the property as determined by a licensed appraiser. Example: If the property appraised at $100,000, the maximum amount of the first lien would be $65,000. This gives you a 35% margin of safety in case of foreclosure and the property had to be resold. How would you like to buy the house you’re in now at a 35% discount. This is a “Loan to Own” investment philosophy. If you have to foreclose, it is a positive, not a negative and you may end up making an even higher return on your investment.

We deal with borrowers who have credit issues or can not prove their income and often have no lien on their home or commercial property or a very small 1^st mortgage that we pay off at closing. There are many borrowers who desire the advantage of a loan that can be that can be processed in a few days without common banking delays or the enormous amount of documentation required and are willing to pay higher interest.

Most of the private lender loans we fund have a 1-3 year term and are interest only yielding 10% to 12% with a balloon payment due on maturity with the investor receiving monthly interest.

We initially fund the loans and close them in our name and then have the title company re-assign them over to the investor’s name. We usually have $100,000 to $250,000 of loans in inventory that have funded in the last 30-days. All of the security documents (Deed of Trust) are recorded in the investor’s name at the courthouse for your protection. This is a turnkey program as we collect all monthly payments for your benefit and file the necessary tax documents and make sure the hazard insurance policy stays in force during the term of the loan. In the event of foreclosure we will work with the attorney handle all the details for your behalf.

Everything goes through a licensed real estate title company and we have experienced real estate attorneys draw up all the necessary legal documents. Upon receipt of the investor’s check by the title company, a closing date will be established and the investor will receive the following, all of which will be in the name of the investor.

1. Original recorded 1^st lien mortgage Deed of Trust recorded at the courthouse.

2. Original Real Estate Lien Note

3. Copy of Hazard Insurance Binder Naming Investor As Loss Payee.

4. Original Mortgage Title Insurance Policy

5. Amortization Schedule Evidencing a 10%+ Return to The Investor

While there is a certain amount of risk in any investment, including CD’s (inflation), real estate mortgage investments offer a substantial increase in investment return with minimal or no additional risk. This is a smart win-win investment back up with real estate as security, and that is what prudent investment is all about.

QUESTIONS AND ANSWERS

WHAT MAKES THIS OPPORTUNITY BETTER THAN OTHERS I’VE HEARD ABOUT?

Real estate has a long history of out performing most fixed income investments such as bonds or CD’s. Pension funds and insurance companies invest billions of dollars each year in real estate mortgages, most of it is retirement money from individuals like yourself. If you want safety and income, this is how you get it.

HOW IS MY MONEY PROTECTED?

We only act as mortgage brokers, we have no access to your money whatsoever. Your certified check for amount of the mortgage is made out to a licensed & bonded real estate title company and held in escrow by them per your instructions. The title company and an experienced real estate attorney will prepare all the necessary legal documents to close the transaction. They will file the Deed of Trust for you at the courthouse. They will issue a title policy in your favor guaranteeing a clear first lien title to the property. They will make sure all back taxes are paid and a hazard insurance policy is in place on the property, prepaid for 1 year.

We contract with an independent mortgage note servicing company to collect the monthly payments and disburse all monies and make sure the property taxes are paid and a hazard insurance remains in place for your protection.

WHAT IS THE WORST THING THAT COULD GO WRONG?

The borrower is unable for some unforeseen reason to make monthly payments and defaults on the mortgage. If that happens, then you will have to foreclose on the property on the 1^st Tuesday of the month at public auction. We will handle the all foreclosure proceedings for you.

WHAT IF YOUR COMPANY DISAPPEARS?

Remember, the 1^st lien position is 65% or less of the market value and since you hold the 1^st lien, you get paid first. You can foreclose on the property and sell it yourself. You can also, service the note yourself or contract with a servicing company to service the note and collect the payments. All documents are in your name we only manage the investment for you.

CAN I USE FUNDS IN MY RETIREMENT PROGRAM FOR THIS INVESTMENT?

Yes, IRA Keogh and SEP Rollovers are acceptable. This is a great way to get more money in your retirement account. You will need to set up a self-directed IRA account with a trust company to receive the funds from your current trustee in order to avoid any tax consequences. We can give you the necessary forms to fill out if requested.

HOW CAN I GET STARTED IN THIS INVESTMENT PROGRAM?

It’s easy, just call us and give us the dollar amount you want to place and we’ll tell you what we have available. You would then send a check to the title company and they would set a closing date, it usually takes 10 business days to complete. You can expect to receive your first monthly check about 45-days after closing.

Sterling Investor Capital, LLC

THE LOAN PROCESS

Step 1

A prospective borrower applies to Sterling Investor Capital, LLC for a mortgage loan.

Step 2

Sterling Investor Capital reviews the application and pertinent facts about the borrower, the property to be mortgaged and its community or neighborhood. Each property is personally inspected by Sterling Investor Capital or it’s representative and then approved or disapproved on its merits.

Step 3

The applicant is qualified in terms of a guaranteed title insurance policy, other mortgages if any, other financial obligations, credit status and sources of assured income; all necessary documentation is assembled to complete the applicant’s file.

Step 4

An independent Texas licensed appraiser reviews the property on a conservative basis and a loan is made based on a maximum loan-to-value ratio not to exceed 65% of appraisal.

Step 5

A Texas Board Certified Real Estate Specialist attorney prepares all required legal instruments in accordance with state and federal laws, then the 1^st mortgage loan is closed at a real estate title company. All property taxes owed are brought current as of the closing date and the homeowner is required to pay all property taxes when due under the terms of the Deed of Trust. A one year pre-paid hazard insurance policy is placed on the property.

Step 6

Investor either sends certified funds or wire transfers funds to appropriate title company with purchase and escrow instructions. The 1^st mortgage is then sold and/or assigned to the investor. A completed investment package is then mailed to the investor after closing.

 INVESTOR DOCUMENTS

Each investor will receive a package of legal documents within 3-5 days after purchase. The package consists of:

1. Original 1^st Mortgage/Deed of Trust

The mortgage is the lien on the property. It is signed by the original debtor(s) and along with the promissory note describes the face amount due, the number of payments, the interest rate, and any additional terms. The mortgage is recorded in the office of the County Clerk in the courthouse of the county in which the property is located. The mortgage is the legal recorded personal property of the investor.

2. Original Real Estate Note

The note is the debtor’s personal promise to pay the amount owed. This additional security supplements each mortgage. The note matches all terms of the mortgage and deed of trust and remains the personal property of the investor until fully retired.

3. Assignment/Transfer Agreement

The transfer agreement is the legal transfer of the subject mortgage on the public record from Sterling Investor Capital to the investor/lender and is performed by the title company. The appropriate County Clerk records the transfer agreement and sends a copy to the lender. It provides the matching information on the face amount of the mortgage, the date of transfer, the name of the mortgagor, and the volume and page reference of the original mortgage.

4. Copy of the Fire Insurance Policy

Each mortgage requires that the debtor maintain adequate fire and flood insurance on the encumbered property, pre-paid for 12 months. Each hazard insurance policy is endorsed to name the lender as a loss payee. This means that at all times, the property and lien holders are fully covered in the event of a fire loss. Flood insurance is also required if the property is in a designated flood area. Every mortgaged property is covered by adequate insurance during the life of the mortgage and must be renewed for 12 months, 30-days prior to expiration.

     5. Title Insurance Policy

The title insurance policy identifies the owner of the property and the status of items such as taxes, liens, and encumbrances. It verifies and insures the search of the courthouse records. Each mortgage is protected by a title insurance policy and its binder number is shown in the documents sent to the investor. The investor will receive a completed title policy usually within 30-days after closing from the title company.

6. Amortization Schedule

An amortization schedule is provided to the investor and a coupon book is provided to the borrower showing the amount of principal and interest received with each payment. The investor will receive all mortgage payments directly from Sterling Investor Capital or it’s licensed mortgaged servicer under the mortgage servicing agreement between the parties.

      7. Appraisal Report

A completed appraisal report not over 6-months old showing the marketable value of the property and evidencing a 65% loan to value.

What are private mortgage investments?

Mortgages that are funded by private individual investors vs other sources of funds such a such as a traditional bank or mortgage bank. These loans are often called “hard equity loans” because they’re hard to get unless you have a lot of equity in your property. Just like the banks, all the loans are secured by mortgages. Where as a bank may take 45 to 90 days to underwrite and fund a loan we’re able to do in 7- 10 business days.

1. Do you do all your business in Houston?

About 60% of our business is in the Houston Metro area between Galveston & Conroe and the balance in Texas metro areas of Austin, Dallas & Fort Worth. We want to be able to drive by the property to inspect it and check out the neighborhood and get a feel for the area. It’s important to stay close to metro areas because you have more buyers in a larger market if you get the property back for non-payment. We don’t want to own any property. We want to be in at a low enough LTV that if we get it back thru foreclosure that somebody is going to bid on it and buy it back from us.

2. When you say loan to value (LTV) what do you mean?

That’s the ratio of the value of the property to the amount of the loan. The lower the LTV the safer the investment risk. As an example on a residential loan we generally go up to 65% of value on houses under $500.000. On houses over $500,000 we’ll only loan about 60% of the value and if the house is valued over $1,000,000 we’ll only loan 55% of value. We want to be conservative and make sure we are always well under market value.

3. How liquid are private mortgage investments?

Unlike stocks or bonds, where all you have to do is call up your stock broker and place a sell order and get your money in 5-days, real estate is not that liquid. You give up some liquidity for the safety of an investment secured by real estate. However, if an investor needs to sell his mortgage we are generally able to find a buyer in 30 to 45 days for his mortgage note and cash him out. In the event of default and the investor gets the property back in a foreclosure sale Sterling Investor Capital will buy it back from the investor for the balance of the note.

4. How many of these private mortgages do you fund a month?

We average 5 to 10 private mortgages loans a month. We’re getting a lot more inquires lately because all the traditional lenders have tightened up their underwriting requirements. Some borrowers that may have qualified 6-months ago are bank turndowns now.

5. Do you offer private mortgage financing for commercial property?

Yes, we do finance a lot of small commercial loans between $200,000 & $800,000. Commercial property comes in all shapes & sizes and every one is different. We use a different set of criteria when evaluating them. The LTV is lower depending on the type of property. As an example, an apartment with lots of tenants is less risk than a free standing building such as a body shop with one tenant. The LTV on the apartment might be up to 65% whereas on the body shop it would be 50%-55% LTV.

6. Do you offer a mortgage pool that investors can participate?

Not at this time, we have talked about it to allow individuals that don’t have $100,000 to $200,000 to invest and want to take advantage of this low risk mortgage investment. There are a number of hedge funds that have pooled $100,000,000 to $400,000,000 to invest in private mortgages that have entered the market.

7. What type of investors do private mortgages appeal too?

It’s always prudent for one to have a diversified portfolio. Private mortgage investments should appeal to anyone that wants the safety and security of an investment secured by real estate and likes monthly income. It’s great for IRA’s, as there’s no income taxes to worry about.

8. What is your typical dollar amount of a private mortgage investment?

Most residential mortgages that we fund are between $80,000 & $300,000 and the majority of the commercial loans are $200,000 to $600,000.

9. What are the typical terms of the mortgage?

The terms for the majority of the private mortgages we originate are 1-3 years interest only. However, most of the time they are paid off early, we probably average 2-years. They either refinance or sell the property.

10. Why would someone want to borrower money at high interest rates?

Keep in mind our main business is residential & commercial loans to credit worthy individuals. If they can’t qualify for a conventional loan they we offer them a private mortgage. It just gives them another option. About 80% of our loans are referred to us by other mortgage brokers who can’t place the loan with a traditional lender. We love bank turndowns. We can close our loans in 7-10 days. We are quicker than a bank and cheaper than a partner.

11. What is the worse thing that can go wrong?

The borrower is unable for some unforeseen reason to make the monthly payments and defaults on the mortgage. If that happens, then we will have to foreclose on the property on the 1^st Tuesday of the month at a public auction on the county courthouse steps. In the event foreclosure is necessary we handle all the foreclosure proceedings for the investor and will buy the note from the investor if received back from a foreclosure sale.

12. What if your company disappears?

Remember, the 1^st lien position is 65% or less of the market value and since you hold the 1^st lien, you get paid first. You can foreclose on the property and sell it yourself. You can also service the note yourself or contract with a servicing company to service the note and collect the payments. All documentation is in your name not Sterling Investor Capital.

13. CAN I USE FUNDS IN MY RETIREMENT PROGRAM FOR THIS INVESTMENT?

Yes, IRA Keogh and SEP Rollovers are acceptable. This is a great way to get more money in your retirement account. You will need to set up a self-directed IRA account with a trust company to receive the funds from your current trustee in order to avoid any tax consequences. Entrust is probably the largest in the country that specializes in real estate and has an office in Houston at Hwy 6 & I-10 and you can also use Sterling Trust in Waco. We can give you the necessary forms to fill out if requested.

14. WHAT MAKES THIS OPPORTUNITY BETTER THAN OTHERS I’VE HEARD ABOUT?

Real estate has a long history of out performing most fixed income investments such as bonds or CD’s. Pension funds and insurance companies invest billions of dollars each year in real estate mortgages, most of it is retirement money from individuals like yourself. If you want safety and income, this is how you get it.

15. HOW IS MY MONEY PROTECTED?

We only act as mortgage brokers, we have no access to your money whatsoever. Your certified check for amount of the mortgage is made out to a licensed & bonded real estate title company and held in escrow by them per your instructions. The title company and an experienced real estate attorney will prepare all the necessary legal documents to close the transaction. They will file the Deed of Trust for you at the courthouse. They will issue a title policy in your favor guaranteeing a clear first lien title to the property. They will make sure all back taxes are paid and a hazard insurance policy is in place on the property, prepaid for 1 year.

We contract with an independent licensed mortgage note servicing company to collect the monthly payments and disburse all monies and make sure the property taxes are paid and a hazard insurance remains in place for your protection.

16. HOW CAN I GET STARTED IN THIS INVESTMENT PROGRAM?

It’s easy, just call us and give us the dollar amount you want to place and we’ll tell you what we have available & send you the appraisal for review. You would then send a check to the title company and they would set a closing date, it usually takes 10 business days to complete. You can expect to receive your first monthly check about 45-days after closing.

CALL NOW: 713-784-7676