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CFS works with investors looking to offset capital gains, use Self Directed IRA’s effectively, form trusts and 1031 Exchanges and leverage these to create maximum results.  We are looking for a few experienced investors that understand and realize the opportunity that now stands before us and that are ready and able to take action.  Contact us today to start a profitable relationship.

If you need information or would like to discuss your options with a Self Directed IRA please do not hesitate to contact me personally.  We are always looking to network with individuals, trusts, SDIAS’s, non profits, Hedge Funds, private equity companies, and other entities looking for above average returns.  CFS has been in leader in the seller financed note business since 1999.  Call us today to start a profitable relationship.

Frequently Asked Questions About Discounted Notes.

What is the Yield?
10 to 15 % p.a. is the usual yield, but some notes have higher yields. It depends on the interest rate being charged on the note you buy and the discount you buy it at. The greater the discount, the higher the yields will be.

What is the Investment Term?
The term of the loan depends on the note you buy. Some loans go out to 30 years, but many have a five to seven year balloon. It is your choice whether to buy them or not.

Is it safe?
Mortgage loans are rated among the SAFEST investments you can make. That’s why home interest rates and real estate loans are so much lower rates than credit cards rates. Private money loans typically are based on the VALUE of the real estate itself, as much as the individual borrower’s credit, seasoning, area of country and comfort level with the situation at hand. Second mortgages are always much more risky than first mortgages.  We personally do not invest in any second position notes but, have realationships with a small group of investors that do. 

Is the Investment Liquid?
Typically notes are less liquid than a stock or bond. We recommend only investing money you won’t need back in a hurry. But if you want to turn your incoming payments to cash, just call us.

How much do you need to Invest?
Most notes are from $50,000 to $175,000. You and only you own the mortgage. You are in complete control. The closing should take place either at a title company or at your attorney’s office. It’s your choice. Of course, you should get title insurance, an independent property appraisal and other pertinent documents needed. Your check should go directly to the Title Company or your attorney.

Is it a hassle?
You get your money quickest and have most control when you receive the checks yourself. But if you prefer you don’t even have to collect the payments or contact the borrower. Your mortgage can be set it up for collection by you with a loan servicing company, some banks and title companies will also perform this service for you. 

How about IRAS and other Retirement Programs?
This is a great investment for your Pension Plan or IRA. The following is an example of how your money will increase so much faster by just letting it compound at a higher rate. Don’t forget, if you use your Pension Plan or IRA your income is tax deferred and can compound much faster with no taxes to pay.

What precautions should I take?
Be aware of the meaning of Loan to Value and Investment to Value.
The greater the Loan to Value the riskier the loan, other things being equal. Loan to Value is the percentage of the loan to the property value. Thus an $80,000 loan against a property worth $100,000 has an 80% LTV.

Most lenders agree that you require a lower LTV on certain types of loan.
The least risky loans are to homeowners in their own home, followed by second homes, rental properties, commercial properties then vacant land. Many lenders will only lend 50% or less of the value of vacant land.

Many lenders also will not lend to corporations or trusts. We recommend that if you do lend to either of these entities you require a larger cash down-payment and/or a lower LTV.

We recommend you ALWAYS insist on a Borrower being personally responsible ( a Personal Guarantee) on the note.
Investment to Value (ITV) means the percentage of your investment in an existing mortgage to the value of the property. If you pay $60,000 for a $70,000 mortgage secured by a property worth $100,000, your ITV is 60%.

Creative Financial Solutions prides itself on its investor relationships. Since 1999 we have been providing liquidity and equity with a constant focus on growth. If you are an experienced investor and would like to work with Creative Financial Solutions in purchasing notes secured by real estate and business assets please contact us today at                               (269)353-9238                
Please read these terms and conditions carefully.

By accessing this web site and any pages thereof, you acknowledge your agreement with and understanding of the following terms of use and legal information pertaining to both this web site and any material in it or associated with it through download or email. If you do not agree to the terms and conditions below, do not access this web site or any pages thereof.

Nothing on this web site should be construed as a solicitation, offer, or recommendation, to acquire any interest in a private mortgage or private mortgage fund or to engage in any other transaction. Such an offer will only be made in connection with the delivery of either 1) a confidential memorandum regarding a single note and mortgage that are for sale to anyone since money will not be pooled with others and you will become the note holder; or 2) upon the delivery of a confidential private placement memorandum, which will be made available only to pre-qualified persons upon their request. For a person to be pre-qualified they must be an accredited investor, and meet certain securities’ requirements. Your investment would be in a fund, pooled with other individuals or institutions, and the fund would hold the notes and mortgages.

The value of private mortgage investments and the potential income derived from them may fluctuate. A private mortgage investor will be subject to the risks inherent in making mortgage loans including, without limitation, (a) the borrower may default, requiring that the mortgage investor foreclose on the underlying property to protect the value of its mortgage loan, (b) the borrower may not be able to make a lump sum principal payment due under a mortgage loan at the end of the loan term, unless it can refinance the mortgage loan or (c) if interest rates are volatile during the loan period, a private mortgage fund’s variable-rate mortgage loans could have lower yields. Since private mortgage loans are sometimes non-recourse, a private mortgage fund must rely solely on the value of a property for its security. In addition, mezzanine loans will be subject to the prior rights of mortgage holders and creditors of the corporate entity owning the applicable property. Second and/or Wraparound mortgages will be subject to the prior rights of first mortgage holders. Generally, the larger the mortgage loan compared to the value of the property securing it, the greater the loan’s risk. Upon default and following foreclosure, a private mortgage fund may not be able to sell the property for its estimated or appraised value. Also, certain liens on the property, such as first mortgages, taxes and contractor or mechanic’s or tax liens, may have priority over a private mortgage fund’s security interest. In such cases the Lender may be required to pay the holders of such liens to protect its security interest and investment.

We cannot forecast with certainty the size of any return, and investors may experience declines in the value of their private mortgage fund investment. Past performance is not necessarily a guide to the future performance of an investment. Information presented on this site has been obtained from sources and vendors that Creative Financial Solutions believes to be reliable. However, we cannot guarantee its accuracy. Prospective investors should be aware that such information is subject to change without notice. Additional information is available by contacting our customer relations department.