Texas Home Notes LLC and Gem Rentals LLC
Q. What is a private lender?
Anyone can be a Private lenders making loans directly to Gem Rentals LLC or buy a note from Gem Rentals LLC . The liens securing the loans are held in the lenders name. You as the lender, manage the liens. This activity is not regulated by the SEC.
Q. How do IRA investments work?
A. You make IRA investments with a self-directed IRA account. A company that specializes in doing self-directed IRA’s will set up your account and move your IRA for you. There is a small fee for this. They handle the money for you as required by the IRS. The lien on the property is in the custodian’s name for your benefit. It is a simple process, and IRA custodian companies make it easy for you.
Q. Who pays me?
A. We sell homes to owner occupants and occasionally to landlords. These buyers pay Gem Rentals their monthly payments. Gem Rentals then pays you. If the home buyers does not pay Gem rentals still has to pay you. Any collection problems are the responsibility of Gem Rentals.
Q. How is my money secured?
A. You are in a first lien position on the home.
Q. What is the interest rate?
A. Interest rate paid depends on the loan chosen. We pay from 7% to 8% interest.
Q. What happens if something happens to the Principal James E Glasgow Sr?
A. The loans made are secured by liens on owner occupied houses. The borrower Gem Rentals LLC ‘s management team will continue the business and make payments as per the terms of the mortgage notes.
For Private lenders: The mortgage notes owed to Gem Rentals LLC by the home’s buyers will be sold thus paying off the private lenders.
The 30/70% loan to value allows enough note equity to restore the investors invested capital even if the mortgage notes have to be discounted to facilitate a sale.
Q. As an investor what happens if I need my funds back?
A. You should consider this investment as a long term hold. Interest is paid quarterly, with principal not returned for 5 years or longer. Any cost associated with early withdraw would be borne by the investor, we do not anticipate the cost being more then 5% of the amount withdrawn.
Q. Why are you raising this money?
A. Our business plan “Owner Finance” model calls for us to buy homes and re-sale the homes to owner occupants on owner carry notes. We are the buyer’s bank. We keep enough cash on hand to buy 4 to 6 houses at a time. Beyond about 8 houses we began to run out of cash to buy more properties.
Q. How much do you have invested in this?
A. Besides all the investment in Gem Rentals LLC and the on going cost associated with that. We keep between $150,000 and $300,000 on hand in cash, or in the cost of houses in inventory not yet sold.
Q. What happens if a home buyer defaults?
A. The home buyer’s mortgage is to Gem Rentals LLC who covers any cost associated with foreclosures and re-sale of the property while continuing to pay the Fund or private lender their interest.
Q. How do you repay the Private Lenders at the end of five years when the home buyer has not paid off their home loan? We have several options to resolve this issue.
A. There usually is another investor wanting to lend in place of the existing lender.
If you have any questions on how you can work with us as a Private Lender… just connect with us through our contact us page or REGISTER with the form below as a private lender for more information. We will get back to you in a timely manner.
Happy investing! We want to hear from you so don’t hesitate to connect with us anytime.