Single Family Residences

Single Family Residences are the most sought after investments in Private Money investing. This is due to their ease of resale if the lender gets the property back in foreclosure and they tend to display their worth readily in contrast with raw land, for example. CSI Mortgage has set a limit of 70% loan to value as the maximum which will be lent on Single Family Residences. This means the maximum loan amount can be up to 70% of the appraised value of the property.

Multi-Family Residences

Multi-Family Residences consist of duplexes, triplexes and four-plexes. These properties present unique situations because, for most borrowers, they are investment properties. In other words, the borrowers do not reside in the property. This, however, is something for which some investors look. These properties usually have significant income from the renters who occupy the units, therefore, in the event the borrower stops paying, loan payments can be maintained simply by turning the rents recovered from each unit into a mortgage payment to the Private Money Investor. CSI Mortgage has also set a limit of 70% loan to value as a maximum for these property types.

Commercial Property

This category can include shopping and apartment complexes, restaurants, office buildings, or garages. In the instance of restaurants, equipment cannot be secured, only the real estate. These loans usually have higher values and therefore higher loan amounts. These properties have similar benefits to Multi-Family Residences in that income can be derived from the property itself, rather than depending purely upon the payments of the borrower. CSI Mortgage sets a maximum loan to value of 70% on these properties.

Land

Land loans come in a wide assortment of circumstances. Some loans are on vacant lots with city utilities waiting at the street and others are larger parcls of land waiting to be developed. In any event, land presents a good investment opportunity, but less in return if the borrower defaults. Some lenders prescribe to the old proverb "can't get hurt in dirt" meaning raw land, in the right locations, will hold a value and is not dependent upon upkeep and maintenance to hold its' value. In any event, CSI Mortgage recognizes the increased risk involved in lending on undeveloped land and therefore sets a maximum loan to value of 50% to secure the lender.