Guaranteed Rate Of Return Program

 

 

Our program is an ideal opportunity for:

• Risk Averse Individuals

• Diversified Investment Opportunities

• Income Focused Retirees

 

Guaranteed Return on Asset Backed Loans

• Minimum Amount – $100,000

• Contract is between Lender & Segal Investment Group, LLC

• Monthly interest accrues the day following SIG’s receipt of funds

• The loan period is determined by the project at hand.

• SIG retains the right to pay off the loan early without penalty

• Loan is secured by deed of trust on a specific property owned by SIG

• Payment includes full amount of initial principal investment plus accrued interest within 72 hours of close of escrow, following the sale of the property, or refinance, which ever occurs first.

 

 

Frequently Asked Questions

 

How is my capital secured?

Your funds are secured against a specific SIG owned property and we record a Deed of Trust in the amount of your loan against that specific property with the county. Once that Deed is recorded, we cannot sell or refinance the property without first repaying you all of your initial investment capital and all interest due. Anything less than full repayment allows you the opportunity to foreclose on the property.

 

What is the return and how is interest paid?

We pay a secured 8% annualized simple interest return on your capital based on a 360 calendar year, which is the same as a bank. Repayment of the principal investment and any interest earned are paid in one lump sum with in 72 hours of the sale and close of escrow of the project.

 

What is your maximum LTV, as well as your average LTV on your homes?

At purchase we may borrow up to 80% of purchase price. Almost always, we are buying at a discount, so there is more than 20% of equity from day 1 to protect your investment dollars. On average our acquisition costs is approximately 60% for projects that need a remodel, and up to 33% for projects that are in need of a value add or to be rebuilt.

 

How is the contract structured?

Two simple documents makes up our contract: The Installment Note, which lays out the terms of repayment and a Deed of Trust that is recorded against the property with the county and secures your interest.

 

How many concurrent properties will SIG hold at one time?

We typically have between 3-5 properties.

 

What is the protocol if the asset underperforms? 

Your principal investment and interest due is guaranteed by the asset, which means if we fail to pay back any principle and interest then you as the lender may foreclose and take the property.

 

Has SIG ever defaulted on a private loan?

Never. We have always repaid both the principal and interest in full. Since 2014, SIG has borrowed in excess of $10 Million and repaid its lenders with a 100% success rate.

 

What if the loan pays off early? Can I still make an 8% annual return?

Our company enjoys consistent deal flow, meaning if your private loan pays off early you nearly always have the option to roll the funds immediately into a new loan on another project and continue the annual return. Interest will only be earned on the days your capital is deployed with us.

 

Can I lend $100,000 and be in first position?

$100,000 loans will be in a junior position. Typical purchase prices in our market are $600,000 to $1,500,000. Loans that cover a minimum of 80% of the purchase price warrant the first position.

 

 

 

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