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9.5% interest on a 6-month note with a 70% LTV*, backed by a first-lien on single-family residential real estate, is an investor's dream. 
In fact, for most of modern history, opportunities like these were reserved primarily for bankers, credit unions, and insurance companies.

We know that you're going to like it just as much as we do.  But first, it's critical that you have a complete understanding of exactly how it works.

Below is a comprehensive outline of how these transactions work from start to finish.  If you would like more information on any specific element, please click the term you're interested in to expand a complete definition.

*70% LTV is based on the average LTV of all of our loans.  The maximum LTV for any of our loans is 80%.

"Ninety Percent of all millionaires become so by owning or investing in real estate."


1.  Loan Approval

5-10 Minutes

A.  Review The Loan Offer

  • Contents of the "Offering Letter"

    • Property address & borrower's name

    • Purchase price

    • Repair cost

    • Closing costs

    • Appraised value

    • Loan amount (average is $133,000)

    • Term (almost always 6 months)

    • Interest Rate (always 12%)

  • Included with the offering letter

    • Purchase contract​

    • Repair list

    • Appraisal report

    • Borrower's loan application

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2.  Funding The Loan

A.  Receive Funding Instructions

  • Instructions will be sent 1-5 days before funding and include:

    • Funding Letter​​

      • Includes amount and date of wire

    • Settlement Statement​

      • Includes itemized list of all costs

      • Includes the amount to wire to closing

    • Wire Instructions

      • Includes the recipient's account information​

      • Gives instructions on how to send the wire

  • ***PLEASE NOTE.  You will not wire any money until you receive all collateral.

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B.  Receive Collateral

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3-5 Minutes

C.  Wire Funds to Closing

  • Send the wire with reference to:

    • The amount we provided to you

    • The wire instructions we provided to you

      • ***PLEASE NOTE.  Your wire is sent to the title company, not us.​

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3.  Funding Draws

A.  Inspections

  • We inspect all properties once per month to verify:

    • Completion of repair list​ and draw request items

    • Progress since last inspection

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B.  Draw Requests

3-5 Minutes

  • No more than 9 total, usually 5 or 6 (within 6-8 weeks from initial funding)

    • Borrower sends us:

      • List of completed repairs​

      • List of purchased materials

      • Receipts and invoices for all materials and repairs

    • We send the borrower:

      • A check written off of our account for the amount of their request​​​

      • A statement of total disbursed funds to-date

    • We send you:

      • An itemized summary of the draw​

      • A statement of total disbursed funds to-date

      • An invoice for the amount of the check we gave to the borrower

    • You pay our invoice:

      • By transfer​

        • You must have your own account at our bank

          • This facilitates same-day transfers​

    • Interest accrues on each draw separately

      • Each draw has it's own interest accrual

      • Interest starts the day funds are given to the borrower​

  • *Draws are capped as stated in the Loan Agreement​​

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4.  Processing Pay-offs

A.  Borrower Gets a Contract

  • After borrower completes the rehab (6-8 week avg.)

    • House is listed with a realtor​

    • Realtor shows house and negotiates offers

    • The borrower obtains a signed purchase contract

      • Usually takes 30 - 60 days to get a contract​

B.  We Send a Pay-off Statement

  • The contract is given to a local title company by the borrower's realtor

    • Title company runs title work and see's your lien​

      • They will also see that the lien is in the "care of" North Oak Investment​

    • Title company contacts our office and requests a "pay-off letter"

      • We send a letter which includes​:

        • The amount due to pay-off the loan​

          • Includes all principal, interest, and your incoming wire fee​

            • On average, purchase contracts close in 30 days

            • The pay-off total includes the amount due at the time of closing

            • We also include the accrual per day, in case closing is delayed

        • Wire instructions to your account

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C.  We Verify Your Receipt

3-5 Minutes

3-5 Minutes

  • The day after the scheduled pay-off we will contact you to request:

    • The amount you received​

    • The day you received it

  • We send you a "Final Recap" statement which includes:

    • Total principal​​

      • Due​

      • Paid

    • Total interest

      • Due​

      • Paid

    • Amount of under/over payment

      • Usually you're over-payed by the closer​

        • We'll tell you how much you were overpayed​

        • We'll ask you to remit a refund payable to the borrower to our office

      • Sometimes you're under-paid

        • This is rare​

        • ​We'll get the remaining balance to you before you release your lien​

D.  You Sign & Return the Lien Release

3-5 Minutes

  • Once your pay-off receipt has been confirmed and over/under payments have been resolved

    • We send you a lien release​

    • You sign and return the lien release to our office

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E.  We Send Year-End Reports

  • At the end of every year, you will receive a statement from us of your total interest earned that year, along with all of the tax documents and borrower's ID numbers you'll need to give to your accountant.

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"Real estate is an imperishable asset, ever increasing in value.  It is the most solid security that human ingenuity has devised.  It is the basis of all security and about the only indestructible security."



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