What We Do
Compass Investments LLC invests in real estate using money from private lenders, not banks. In turn we pay our private lenders an interest rate that far exceeds anything they’ll find in a savings account or CD.
At this time, Compass Investments LLC strictly works with residents of Indiana. If you are a resident of Indiana and want to increase your return on your savings, CD, or IRA account, please review the information that follows and give us a call. If you're not an Indiana resident and you want more information we will try to point you in the right direction.
Why Real Estate in our current economy?
Why do we borrow at high interest rates?
What is a private mortgage loan?
Who handles all of the details?
Is this a long-term investment?
Is my loan really as secured as it sounds?
How do I use my IRA’s or pension plan?
What are my options if Compass Investments LLC doesn’t pay?
What kind of documents should I receive?
Why Real Estate in our current economy?
It's all supply and demand. People are trying to sell their homes, but because fewer people can get financed more and more homes sit on the market. This has caused real estate prices to fall. No matter what though, people still need a place to stay so the demand for rentals and lease options has gone up.
Now look at this from a real estate investor's point of view. There is an increased demand for their product/service (homes for rent), but a drop in their costs (properties they buy). This means that profits have soared! Right now is one of the best times to invest in real estate ever!
Why do we borrow at high interest rates?
It’s not the cost of money that counts, but the availability.
We make it possible to acquire good deals in houses because the funds were available from private lenders that would not be available from banks. If a Real Estate Investor can get good at locating good deals on houses, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing him for being an astute Real Estate Investor. Having the money available will make or break the deal and paying a higher interest rate is irrelevant compared to the loss of thousands of dollars in profit if the money weren’t available. Back to Top
What is a private mortgage loan?
It is a loan that you make to a Real Estate Investor and in turn your loan is secured by the actual property that the Real Estate Investor purchases. I’m not talking about high loan-to-value loans the banks and savings and loans make on homes. We deal with very low loan-to-value (LTV) loans. By that, I mean no higher than 50 to 75% of the value of the property securing the loan. Our typical LTV is 65% to 73%. This means if a house appraises for $60,000, we could buy it for $45,000. That’s 75% loan-to-value. It’s obvious why this is a much safer approach than most lending institutions take.
Back to Top
No! The amount of the loan is determined by each property’s needs. Back to Top
Who handles all of the details?
We will. It’s our job to get you proper documentation and protect your interest. All of this costs you nothing. We pay all costs. If you make a $45,000 loan, you send a check for $45,000 to the closing agent and you get a mortgage for $45,000. It’s that simple.
Back to Top
We will set up your account. Just set back and we will send you a monthly interest only check at or you can let the money accrue and receive a higher interest rate when we sell the property. Back to Top
Is this a long-term investment?
The terms vary. We borrow money to buy and fix properties and then we eventually sell the property. You start earning interest the day we purchase the property and then your principle and accrued interest is paid to you when we sell the property. Our business is to buy and sell property and typically we will get your money out working again within 30 days. It’s your money and it’s your choice how long you want to continue to earn this high rate of return. Back to Top
If you want out, it will take from two to six weeks. You really shouldn’t make mortgage loans if you feel you will liquidate shortly, but the option is always available. And there is no penalty for early withdrawal. Just call and we will handle all of the details. Back to Top
No! You make the whole loan yourself. You get a lien against the property. You are the bank. Back to Top
Is my loan really as secured as it sounds?
Remember that making loans is a business and should be treated like a business. That is why we have created a separate document called a disclosure statement to let you know exactly how the company operates, the risks, and exactly how your money is secured.
We follow these common sense guidelines that we’ve talked about and if you set up a simple system and let the professionals implement the system, your loan portfolio can be hassle-free and produce staggering yields. Also remember, all costs are to be paid by the borrower…. not you! Back to Top
How do I use my IRA’s or pension plan?
Making real estate loans is a widely accepted use for IRA’s and Pension Plans. Think of it, now you cannot only loan out money that has been unavailable for you to use, but you can make it grow rapidly… Tax Deferred!
Since Uncle Sam isn’t taking a bite out of your profits until you draw out the money, more money is left in the account to compound and grow. The results are staggering… Your money will grow two, three, or even four times faster than your current investments and you maintain control.
In order for you to use retirement accounts for loans they must first be administered by a “Third Party Administrator” or TPA. This TPA is set up and approved to administer your loan activities. This means you will probably have to transfer your plan to one of these TPA’s, unless of course, your present administrator is set up to do that.
When your TPA is located, simply send the transfer form to them and they’ll do all of the work for you. Once you’ve done that…..You’re Ready to Make Loans!
When we’ve selected a property, you simply notify your TPA where to send the check for the gross amount of the loan and you’re business.
There should be no cost to you except your plan administering costs. Some TPA’s will even collect monthly payments for you and deposit them into your account.
If you have any questions regarding your plan or its administration, contact your Plan Administrator. If you need help transferring your IRA just give me a call. I’ve located the best in the country and I have all their forms in stock, so you can get going immediately. Back to Top
What are my options if Compass Investments LLC doesn’t pay?
Actually, there are several options. Keep in mind though, that in all our years of business we have never been late on a payment to a private lender.
So you have the facts, your options are:
1) Call us and we will send your money back.
2) We could ask to restructure the note. For example, let’s say we are behind on payments to you. Now Compass Investments LLC can and would like to keep the house, but say we can’t come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and make an extra payment on the arrearage, or you could simply add the arrearage to the principal balance and extend the term of the loan. This means you would be collecting interest on interest for the entire remainder of the loan. There is almost always a way to work it out if both sides are willing.
3) Have Compass Investments LLC deed you the house. This is an opportunity for you to get a house at a greatly discounted price. When this happens, you can create a tremendous profit center by reselling the house.
4) If left with no other choice, you should simply foreclose. Foreclosure isn’t the evil, time consuming, costly legal process that most people think it is. It’s as simple as sending your note to an attorney and saying ‘Do it.’ All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney’s office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys’ fees, court costs, and all other expenses you have incurred in connection with your loan.
If you wind up with the house, that doesn’t mean you have to keep it. It can be sold immediately at a fair sale price and still produce a profit over and above your already high yield on your loan.
Now, we’re doing a lot of talk about default here and maybe more information than was necessary, but we just wanted to make sure you had all the facts and your questions are answered. Back to Top
What kind of documents should I receive?
Your closing package should contain the following:
1) A copy of the mortgage.
2) An after repaired value appraisal.
3) A hazard insurance endorsement naming you as mortgagee.
These documents provide you with peace of mind. Back to Top
Private lending is an incredible way to build wealth in a hurry that most people aren’t aware exists. So what’s it going to be? Are you going to continue to let other people control your money so you only get a return that barely keeps up with inflation? Or are you going to take control and make sure that when you get ready to retire, you can do what you want without worrying about money? If you are retired, squeeze out every dollar of interest you can.
You’re now informed. You now have the power to take control. Back to Top
If you live in Indiana, contact us today for more information!
This is neither an offer to sell securities nor an invitation for offers to purchase securities. Securities may only be sold in compliance under an exemption from or a registration under relevant state and/or federal securities laws, and only to Indiana residents.
All Rights Reserved
Powered by Solar Dragons