Why does Seneca borrow at such high rates?

Because in our business, it’s not the cost of money that counts…but the AVAILABILITY of money.

Private Mortgage Lenders make it possible for us to acquire good deals on properties because the funds are available in a short time-frame that may not be available from banks.  Seneca offers sellers of distressed properties a quick solution to their real estate problems.  And as a result, Seneca negotiates a significant discount off the price of the property for being able to provide this quick solution.  Having the money immediately available will make or break a lucrative real estate deal and paying a higher interest rate is irrelevant compared to the loss of hundreds of thousands of dollars in profit if the money isn’t available. 

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I've heard that people are now getting 100% financing on mortgage loans. Will I be making a loan at 100% of the value of the property?

With the Seneca Private Mortgage Loan Program, we deal with very low loan-to-value (LTV) loans.  In other words, no more than 85% of the value of the property is securing the loan, which includes all expenses and rehab costs.  Our typical LTV is 70% to 80% which gives our Private Mortgage Lenders additional security.  This means if a property appraises for $1,600,000, we will buy it, repair it and hold it until it sells and will pay no more than $1,200,000.  That’s a 75% loan-to-value.  It’s obvious why this is a much safer approach than most lending institutions take.  Banks make loans at 90% or even 100% loan-to-value ratio.

As a Private Mortgage Lender with Seneca, you won’t ever lend more than 85% total LTV.  You’re making a safe loan.  You will never make a loan without at least 15% safety net after all costs.  We don’t violate that rule so that we can all make a profit.

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Do I need a lot of money?

No!  We accept loans as small as $50,000.  You will determine the amount of the loan you feel comfortable making.

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Is this a long term investment?

It can be any term you want.  You are in control.  Usually a private mortgage lender wants a five-year term, but some don’t care if it stretches to seven or ten years.  You can pick a term that suits your strategy for investing and retirement.  It’s your money and it’s your choice.  We will guarantee you the 12% return for no less than 5 years.

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What if I want to liquidate?

To ensure the stability of the property, we require a minimum one year commitment.  However, after the first year if you wish to cash out of the program, we simply ask for 45 days notice to return your funds to you.  Best of all, there are NO WITHDRAWAL PENALTIES.  Just call and we will handle all of the details.

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Is my investment really as safe as it sounds?

Yes!  We follow common sense rules that not only keep your investment safe, but also keep our business profitable.  Remember that making loans on real estate is one of the safest and most lucrative forms of investing in the country.  The Promissory Note, Deed of Trust and low LTV loans ensure that your investment is low risk.  These items, coupled with the support of the area’s most respected real estate professionals and Seneca’s own internal lending systems and practices all work to ensure the security of your mortgage loan funds. 

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How do I use my IRA or Pension Plan?

In order for you to use retirement accounts for loans the account must be administered by an IRS approved “Third Party Administrator” or TPA.  This means you will have to transfer your plan to an approved TPA, unless of course, your present administrator is set up for self-directed accounts.  We can help you locate a TPA, send the transfer form to them and they’ll do all of the work for you!  Once complete, you are ready to make loans!  And once you’ve selected a property that you want to invest in with us, you simply notify your TPA where to send the check and you’re in business. 

We have selected Equity Trust Company as our preferred TPA.  They have been in business for more than 30 years and can get you started immediately.  Feel free to visit their website at www.trustetc.com and learn more about their services.   Please seek the assistance of a professional TPA when transferring your IRA. 

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What are my options if Seneca doesn't make it's interest payment?

Actually, there are several options but first and foremost, please be aware that our system is designed so that Seneca CAN’T make money if you don’t make money.  And because we are a for-profit company, we have every incentive to ensure that you are paid so that we can realize our earnings.

To answer this question:

1)      Call us and we will send your money back.

2)      We could ask to restructure the note. 

3) Seneca can deed you the property.  This is an opportunity for you to get a commercial property at a greatly discounted price.  If this happens, you can create a tremendous profit center by reselling the property.

4) If left with no other choice, you could foreclose.  It’s as simple as sending your note and deed to an attorney and saying ‘do it’.  You would then receive the property at a discounted price. 

Do note, in our years of business we have never been late on a payment to a private lender nor have we ever incurred a loss on any property.   

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