real estate investment

Real Estate Investment Analysis, Private Investors Program and Investment Services

Brickfront Real Estate Investment Services utilizes an in-depth investment analysis to offer customized solutions for your investments. We invite you to check out our Private Investors Program, which introduces methods to gain greater control over investments and allow them to grow two to five times its current rate.

Sid Hameed here. I’m the owner of Brickfront Investments in Largo, MD. I have been a real estate investor in Washington, DC, Maryland and Northern Virginia since 1994 and have personally closed over 100 + real estate transactions. I have mainly focused on rehabbing properties, but I can only rehab a certain number of houses at any one time. As a result of the current market conditions I really feel like I am passing on a TON of deals that I would like to pass on to other real estate investors. We are extremely proud to announce our newest Division, Washington DC Mortgage Note Brokers. Investors with interest in reviewing our current inventory of Performing Notes, please indicate your interest by contacting us here.

For additional information call us at (240) 764-5347 or contact us today!

Private Investors, Investment Opportunities, Investing in Real Estate

Brickfront Private Investor Program

Private Loans Secured by a Mortgage

A private loan is a loan made to a real estate investor that is secured by Real Estate. Private Loan Investors are given a first or second mortgage that secures their investment and legal interest in the property. We offer attractive ratios to our private lenders. Our standard LTV ratios are less than 75% of the value of the property once the construction is complete. Some cases can be as low as 65%.

For example, if a property is valued at $100,000 estimated at completion, our private lender will never be asked to loan more than $75,000. That’s a 75% as-finished loan to loan value ratio. We believe this strategy is a better approach than what mortgage lenders did before the mortgage crisis. Many lenders suffered losses because they made loans at very high loan-to-value ratios, leaving them no equity for transfer costs in case they are ever forced into taking back the collateral property.

We believe Private Loans should be made with 25% safety net because YOUR security is at stake. For additional information call us at (240) 764-5347 or contact us today

Equity Investments, Investment Security, Investment Strategies

For Equity Investments with added Investment Security, choose Investment Strategies provided by Brickfront for great investments with less risk, higher returns.

  • A Promissory Note
  • A Deed of Trust (Mortgage) recorded against the property
  • Provided with a valid Hazard Insurance Policy
  • Lender’s Title Insurance
  • Clean Title

Added Security for Your Investment

In addition to the cushion of equity, we provide all our private lenders with the following as an added blanket of security for your investment:

Extremely Risky Investment

These are the types of home loans that were being lent out prior to the recent housing market troubles.

  • 100% Loan to Value
  • No Cushion of Equity
  • Heavily relies on Appreciation
  • Goes “upside down” if prices decline
  • Very risky investment

Risky Investment

These types of home loans are the loans which resemble the types of loans currently being loaned out.

  • 90%/80% Loan to Value
  • Slight cushion of equity
  • Equity cushion can disappear if prices decline
  • Risky investment in this economy

Great Investment with Less Risk

These are the type of investment deals we offer to our private investors. Great investment, with lots of equity for protection on your investment.

  • 25% Loan to Value
  • Substantial cushion of equity
  • Price could drop 50% without much risk
  • Excellent investment for conservative investors

Return on Investment, Risk Control, Investment Analysis

 Brickfront Investments

We make it possible to acquire good deals on houses because funds are available from private investors. Having the money available will make or break a deal. Paying a higher interest rate is irrelevant compared to the law of timeliness.

It’s not the cost of money that counts; it’s the availability of it. If money is not available quickly, the loss of thousands of dollars in profit is usually the result.

We understand that the most important thing to an investor is risk control and investment analysis, prior history/trends of similar investments, and the return on investment. For that reason, we make sure to keep our investors happy by continuously offering higher rates than the market and properly analyzing prospective real estate deals. We also control the risk by finding deals that provide the highest possibility to successfully execute the planned exit strategy. Below we have listed some of the current market rates for some of the most popular investments, and how they compare to a Brickfront Investments opportunity.

Certificate of Deposit

CD Rate: 6 Mo = 0.86% 1 Yr = 1.38% 5 Yr = 2.80%

Note:$50,000 invested at an interest rate of 2.80% (5yr Rate) will earn you $1,400 after 5 years and take 180 years to double your initial investment. Source: www.BankRate.com

S­tocks

S&P 500: 6 Mo = (-0.69%) 1Yr = 16.26% 5Yr = (-11.00%)

Note: $50,000 invested in S&P 500 during the last 5 years would have resulted in a $5,500 loss and the remaining principal after 5 years would be $44,500. Source: www.CNN.com

Dow Jones: 6 Mo = (-1.34%) 1Yr = 17.26% 5Yr = (-3.68%)

Note: $50,000 invested in DJIA during the last 5 years would have resulted in a $1,840 loss and the remaining principal after 5 years would be $48,160.Source: www.CNN.com

Brickfront Investments Real Estate Deal

Single Family Home: 6 Mo = 12% to 14% (Varies per deal) 9 Mo = 16%

Note: $50,000 invested at an interest rate of 14% (6Mo Rate) will earn you $7,000 after 6 months and take 7 years to double your initial investment.

Best Investments, Sources of Capital, Investment Strategies

  • If you obtained a HELOC for $40,000 from built up equity in your home and invested with Brickfront Investments for a 6 month term. Your ROI would be similar to the following.
  • $40,000 at 14% interest which you will receive for 6 months equals $5,600.
  • $40,000 at 4.9% interest which you will pay on your HELOC during the same time frame equals $1,960.

The best source of capital to use in order to fund a deal are any funds you may have that are not earning you a return on your money equal to what it is that we are providing (12% to 14%). Below are some examples of how our investment opportunity compares to some of the most common alternatives.

Investing the Equity in your Home

Your home is an untapped resource for your investment portfolio. Many homeowners do not realize the potential that their idle equity can bring to them. You can obtain a Home Equity Line Of Credit (HELOC) for, on average, around 4.9% then lend that money out via our program for 12% to 14%.

Let’s look at an example:

The difference between the two numbers ($5600 – $1960) is $3,640 (9.1%) is the return on your investment over 6 months.

Investing with your IRA/401K

Shouldn’t your IRA/401K be earning money at healthier rates for your retirement (secured) than 2%-3% returns? Why gamble with stocks?

Let’s look at an example with a 14% return versus a 3% return over a 6 month time span: Your $55,000 investment at 3%: = $1650 in Interest Your $55,000 investment at 14%: =$7,700 in Interest

Investing Savings, CD’s, or Extra Income

Would you like your money to be earning interest at much healthier rates than 2%-3% returns offered by Money Markets and CDs?

Let’s look at an example with a 14% return versus a 2.5% return over a 6 month time span: Your $60,000 investment at 2.5%: = $1500 in Interest Your $60,000 investment at 14%: = $8,400 in Interest

Who Borrows at High Rates and Why?

Investors like us do. We learned that it’s not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities. Our company can obtain good deals on properties because we act quickly and close with cash. Private loans give us a competitive advantage over other investors who take weeks going through bank approval processes in order to purchase properties. Additionally, if a real estate investor locates a good deal on a property, the bank will want to loan on the purchase price, not the value of the house. This will penalize the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate. Paying a higher interest rate is irrelevant when compared with the risk of losing the deal.

What’s the minimum investment?

Minimum investment is $100,000.

Who handles all of the details?

We do. It is our job to get you proper documentation and protect your interest. This will cost you nothing. The borrower pays all costs. If you make a $100,000 loan, you send a check for $100,000 to the closing attorney and get a mortgage for $100,000.

How do I get paid?

We will set up your account. You do not have to actively manage your loan. Our loan documents will give you the option of being paid interest while the house is being worked on, or you can wait until completion and sale and. We will pay all of your principal and interest at that time. If you would like a monthly check, we can do that too! However, a majority of our investors prefer to receive a one time, principle plus interest payment after project completion. For accounting reasons, this is a preferred way for our company as well.

Is this a long-term investment?

Generally, your investment is tied to a specific project with a timeline ranging from 3 to 12 months. We have lending programs for short term holds of three to six months. We also have longer term projects where you could lend money for one year and longer. You pick a term that suits your strategy. Your money, your choice!

What if I need to liquidate?

If you want to have your loan repaid early, a 45 day written notice is required. We will need time to replace your funds with funds of another investor. You should not consider mortgage loans if you feel you will liquidate early.

How safe is Private Loan Lending?

While we cannot guarantee any particular results, we follow common sense lending guidelines discussed above. Your money has the potential to yield much more than bank accounts or bonds. We do our best to evaluate profitability, and to only borrow funds that we believe will be repaid in full

How do I use my IRA’s or pension plan?

Making real estate loans is a widely accepted use for IRA’s and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds which are already in your IRA’s or other retirement plans. However, you can earn these attractive interest rates and have the benefits of Tax free or Tax Deferred money.

In order for you to use retirement accounts for loans, they must first be administered by a third party custodian. One custodian we commonly work with is Equity Trust Company. Call us at (240) 764-5347 and we can assist you with account set up.

After selecting your custodian, you simply send a transfer form. They will do all of the work for you. Once you’ve done that, you are ready to make private mortgage loans.

You will then notify your custodian about the investment you are looking to make, and send the check for the gross amount of the loan. Or, we can work directly with the Custodian and you only sign a few documents. From there, you will wait for the project to progress and earn your return over time.

What are my options if Brickfront Properties, LLC doesn’t pay?

There are several options if a problem arises, however, we strive to make sound real estate investment decisions. We will not profit if your loan is not repaid in full. We will do everything we can to keep your trust and to see to it that you are repaid.

However, if a problem should arise:

  1. The first option will be to restructure the payment schedule on your Private loan. For example, say we are behind on cost over runs and cannot pay the payments to you on time. Brickfront Properties, LLC would like to keep the house and complete the project, but 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 our arrearage in addition, or you could simply add the arrearage to the principal balance and extend the term of the loan. If all goes well, you would collect additional interest for the remainder of the loan. If this option doesn’t make sense under the circumstances, other remedies could be tried.
  2. Brickfront Properties, LLC could deed you the house. In that case you at least have the house and the potential to make a profit if you can sell the house at higher than your cost.
  3. If left with no other choice, you can foreclose. This will require hiring an attorney and will take some time. However, once you have the house title there is a chance of selling the house to recover some or all of your loan.

This will all be discussed with the Closing attorney who can explain the loan process. Finally, our attorneys have told us that we must tell you that real estate investing (including Private Loans) involves risks. This is not a CD or Money Market investment and your returns and / or losses will have the potential to be less than you hoped. This is because real estate can be volatile. Good intentions going into a deal just may not be realized

Summary

I hope we’ve enlightened you on the potential of making profits in Private Mortgage loans. If it appeals to you, you can get started right now! While most people are complaining about the low rates they are getting on their CD’s and other low paying investments, you could be receiving a return of 12%

“Are you ready to take action?”

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 carefully evaluate what this type of investment could do for you. Private Lending can be a part of an overall investment strategy to build wealth.

You are no longer uninformed. If you have questions, please do not hesitate to call us at (240) 764-5347 or contact us for more information.