Here are some answers to some commonly asked questions. If you have any questions that aren't listed, contact us at
You can email us at email@example.com
Why choose PWFSB over a Bank?
Because we are private lenders, we have different requirements to underwrite a loan. And because we are smaller and more flexible, we can have a loan approved in under 15 days, instead of the 45-90 that would take a bank to approve a loan.
Who are the borrowers?
Our borrowers are experienced companies who make a business of finding properties to purchase at a discount, improving these properties where needed, and selling them at a profit. These properties can be single family residences (owner-occupied or not), apartments, commercial buildings or land.
What types of projects to you invest in?
We lend money for single family residences (owner-occupied or not), apartments, commercial buildings or land.
Is my investment “pooled” with other investors?
No. we do not “pool” investors. You are the sole owner of each loan that you invest in. And on occasion we do we will get an approval from you first.
What is the minimum investment amount?
Because we do not pool investors’ money, there is no minimum investment amount. The amount of our smallest loan is the the minimum investment. Also, you can purchase a fractional ownership in a loan. A fractional ownership can be in 25%, 50% or 75% increments.
What rate of return can I expect?
You can expect a return of 9-12%, but the rate of return will depend on the project, type of investment, equity in the property protecting the investment, borrower’s credit profile and condition of the property.
What is the ARV (after repair value) ratio of your loans?
Our loans don’t usually exceed 65% to 75% of the ARV (after repaired value) of the property securing the loan.
How do I receive the borrower’s monthly payments?
We do the entire servicing of the loan, so we will be responsible for receiving payment from the borrower and sending the payments out to our investors.
When is the principal available for withdrawal?
The principal is usually available for withdrawal only after the loan has been paid off.
Can I invest my IRA or Pension Plan?
Yes, you can use your IRA, SEP IRA, 401-K, Keogh and Pension Plans to invest in Private Loans since these are acceptable uses. If you open a Self-Directed IRA account you can invest in real estate in a number of different ways.
How long is my money invested?
It would depend on the purchase and the purpose of the loan. Fixer-uppers are normally invested for about 8 months. Construction projects may take longer.
What happens if the borrower stops making payments?
Because the borrower has a stake in the equity of the property, it is in his own interest to bring the loan current. If he is unable to do so, then the second best choice would be to sell the property quickly so he can save his own investment.
If foreclosure is inevitable, investors would recover all foreclosure costs, late charges and back interest as well as the remaining principal that is obtained from the sale. In the rare cases where there are no bids for the property, then it will be posted for sale in the open market.
Are there any up front fees or costs to invest in a trust deed?
Yes other than the fees your financial institution may charge for transferring the money to us, there are no upfront costs to invest with us. The only cost to you would be the monthly servicing fees, but they start accruing once the loan is in place and you start collecting your monthly payments.
What happens if I need my money before the term of the loan is up?
Should you need to recover your money before the term of the loan is up, there are some companies that can help you liquidate your investment. However, bear in mind that you may need to sell at a discount and that other costs and fees may apply. If this situation arises, PWFSB will work with you to try to resolve the situation satisfactorily.