Investing in Real Estate-Secured Loans
10-14%
Based on current market rates and conditions; subject to change as market rates and spreads dictate.
$25,000
Monthly Deposits
Approval Required
Why Investors Consider Real Estate-Secured Loans
Investors receive regular income in the form of interest payments from borrowers. These payments are often fixed and predictable to provide a steady stream of cash flow.
Real estate secured loans are backed by tangible assets, the property, to provide investors with a degree of protection against default.
Investors can choose specific loans to invest in based on factors such as loan-to-value ratio, borrower creditworthiness, and property location. Investors also have control over how much to invest, subject to a $25,000 minimum and availability on a prospective loan.
Since returns from real estate investments may not move in tandem with those from other investments such as stocks and bonds, the overall portfolio risk is potentially reduced.
Potential Investor Benefits
For investors utilizing their self-directed IRA accounts for investment.
Protection
Real estate secured loans are backed by tangible assets, the property, to provide investors with a degree of protection against default.
In addition to interest income, investors may benefit from capital appreciation if the property value increases over time. This can enhance the total return on investment when the property is sold or refinanced.
Investing in real estate secured loans can offer greater liquidity compared to owning physical properties. Investors can buy and sell loans on secondary markets or through loan marketplaces.
Participation
Investors may review opportunities and choose where to participate, subject to availability, eligibility, and approval.
Investor account updates and payment information may be made available through the investor portal.
Tax-Advantaged Account Considerations
Tax Deferred Income
Tax-Free Income
Where, for example, through a Roth IRA, income generated from investments can be tax free.
Tax Advantaged Accounts
If real estate secured loan investments are held within other tax-advantaged accounts such as HSAs or ESAs.
Tax Deductions
Associated with the investment, such as expenses related to managing or servicing the loans, such as investment advisory fees or custodial fees for retirement accounts.
How the Investor Process Works
Account
Begin by opening an investor account. Opening an account is the first step in the review and access process.
Payments
Monthly deposits are made to your account as payments are received.
Eligibility Requirements
- $25,000 minimum investment.
- Individuals or entities that have filed at least one year of U.S. Federal Taxes and have a physical office or presence and address in the United States.
- All prospective investors subject to JRM Funding LLC management approval.