Lower Risk + Higher Returns = Private Lending
Have you ever wondered what it would be like to be a bank? It sounds lucrative, but banks aren’t known for taking risks. That’s why they tend to stay with secured loans such as mortgage loans or auto loans. Think about it…has your bank ever offered you a loan to purchase stocks, bonds or mutual funds? Yet, they will gladly offer you a loan to purchase real estate. The problem is that they are so tied down with institutional red tape and regulations, that they often cannot make great loans. Their slowness to close and adherence to complex rules, which exclude certain borrowers, keep them from many great opportunities.
Private lending is a growing alternative for borrowers and an excellent way for a private individual, through our fund, to act like a bank, enjoying high returns with moderate risk. Unlike many firms, Thrive Lending hedges risks with a fund that lends to a diversified pool of asset types into a large pool of loans, so you are invested in not one, but many loans for added security.
We lend money to professional real estate investors, developers with an emphasis on larger, multi-family and commercial real estate loans. These are short-term, ranging from six to thirty-six months in length, and are fully collateralized by real estate.
Our New Thrive Lending Fund employs a strategy very similar to our previous lending fund with a few key differences: a larger total Fund size, slightly larger loans, a greater emphasis on apartment assets, and an expanded geographic focus. Our platform fills the gap left by banks and other regulation-constrained lenders.
Thrive Lending also offers borrowers who need larger loan amounts or would rather borrow more debt a product that allows for higher leverage (typically up to 90% Loan to Value) in exchange for a higher interest rate. These “Mezzanine Loans” are 2nd Trust Deeds that enable qualified borrowers to leverage more in loan proceeds in exchange for higher returns for investors.
With our hands-on attention and our comprehensive underwriting and closing processes, we offer high yields to our private lenders while doing our best to ensure the success of our borrowers. Our services include originating, underwriting, funding and servicing private first trust and second deed transactions throughout the United States, primarily in major metropolitan areas.
With private lending, the lender serves as the bank funding the real estate loan. The collateral for the loan is the specific piece of real estate for which the loan is funded. In other words, the borrower’s property is the security for the loan and the debt is evidenced and secured by a deed of trust.
*Net of loan servicing fees, assuming loan is paid as agreed. Past performance does not ensure future success. Money invested in trust deeds is not guaranteed to earn interest, nor is it insured or regulated by the FDIC.
Standard Disclosure: Mortgage paper securities are not rated or insured against loss and may be subject to significant risks that are further described in the general and specific offering circulars. Past performance is not a guarantee of future results. Investors are urged to read the entire private placement memorandum before investing. We invite and welcome your questions.