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Frequently Asked Questions - FAQ

  • Who can invest?
    Accredited, sophisticated, and institutional investors.
  • What is your minimum investment?
    $50,000
  • Why would I want to use my Individual Retirement Account (IRA) funds to invest?
    Income received into an IRA or other qualified retirement account may be re-invested on a tax-sheltered basis, depending if you have a self-directed traditional or Roth IRA. Traditional IRA owners pay tax on that income when taking distributions in retirement. Roth IRA owners can enjoy tax-free distributions during retirement. Consult with your own tax, legal and accounting advisors before engaging in any transaction.
  • What are the advantages of Passive Mortgage Investing?
    This type of investing offers above-market yields with managed risk through rigorous due diligence, stringent underwriting, and risk management practices. Passive investors can earn target annualized returns of 8% - 12%, paid quarterly. These investments have lower volatility than stocks, and are backed by residential and commercial real estate that have real, documented value.
  • Can I continue to add more funds to my investment account?
    Yes, it’s easy to add additional funds to your investment account. However, it is based on availability. For example, on a close-ended fund, there is a maximum commitment amount. Once this amount is reached, no further investments will be received. Investments are made on a first-come, first-served basis.
  • What is the typical return on investment?
    Our investors can expect to receive a target annualized return of 8% - 12%.
  • How often are the financials published?
    Quarterly financial statements (as well as annual tax returns) will be sent out to all capital investors.
  • How can I view how my investment is performing in real time?
    You can access our online investor portal 24 hours a day. You can view performance, distribution history, and other information about each investment you are participating in.
  • Who handles loan payments from borrowers?
    Depending on volume, either Myers Capital or a third-party, professional loan servicing company will collect payments, monitor payment deadlines, and loan terms, providing protection and security for capital investors’ funds. Myers Investment Group is responsible for distributing returns to investors, mailing required notices and statements such as year-end tax documents, etc.
  • What is Passive Mortgage Investing?
    It involves Investing in short-term mortgage loans secured by real property made to real estate investors. Passive investors can earn attractive returns by providing capital used to finance these private mortgages. When borrowers repay these loans, the interest paid is used to generate returns that are repaid to passive investors.
  • What can I use to invest?
    Cash from checking and savings accounts, self-directed Individual Retirement Account (IRA), existing lines of credit (non-real estate), equity in real estate like a Home Equity Line of Credit (HELOC), 401(k) funds or loans, stocks and bonds, and brokerage accounts funds.
  • Why would borrowers want to pay higher interest rates for a loan? Isn't this just for borrowers who cannot get conventional financing?
    Private money, business loans are not just for credit-challenged borrowers as many would think. Most of our clients are real estate investors who desire quick bridge loans to purchase and renovate real estate. Since time is of the essence, these investors are willing to trade lower interest rates with the ability to fund fast and without substantial paperwork.
  • What if I want to withdraw my investment funds early?
    We understand that situations may arise and you need to access your invested funds. Contact us to discuss procedures and restrictions on withdrawing your funds.
  • Can I reinvest my distributions?
    Yes. In a close-ended fund, distributions can be reinvested if there is availability and if the fund has not reached its maximum commitment amount.
  • Why should I invest with Myers Investment Group?
    Experienced in real estate and passive mortgage investing Dedicated to providing passive investors with opportunities to earn above-market returns backed by real estate In business for over 25 years, Myers Capital, our affiliate mortgage banking company, has funded loans for thousands of clients across the United States We take pride in being a relationship-based, family-owned company that cares about the success of our investors and clients.
  • Are Myers Investment Group principals personally invested with the company?
    Yes, the principals of Myers Investment Group believe in the company’s strategy and its ongoing success. It is why they have significant personal investments with Myers Investment Group.
  • What are the disadvantages and risks of Private Mortgage Investing?
    All investments vehicles come with risk and private mortgage investing is no different. It is suggested to consult with your own tax, legal and accounting advisors before engaging in any transaction. Here are the key risks to consider: Private mortgage investing is not liquid. You cannot quickly convert your investment into cash like stocks and bonds. You need to be willing to stick with your investment until maturity. Little to no capital appreciation or equity. Unlike physical property, the majority of returns comes from the interest income generated by the loan. Borrower stops making mortgage payments. If a loan goes into default, the lender has the right to start a foreclosure action and sell the property at a foreclosure sale. The proceeds will be applied to the unpaid principal, interest, and fees.
  • If you don’t require a lot of paperwork from the borrower, then what protects my loan?
    We place greater emphasis on the borrower’s use of funds, equity buffer in their real property and exit strategy. While creditworthiness is important, real estate backed loans are only as good as the loan amount against the market value of the property – also known as loan-to-value. Therefore, if you are lending against a property that is worth $500,000 and the loan amount is only $100,000, the loan-to-value (LTV) is only 20% – leaving you with 80% of the property’s value ($400,000) as protection against default.
  • Leverage Professional Experience
    Tap into the expertise of mortgage and investment pros who are experienced in generating returns on your behalf.
  • Predictable Income
    Distributions consisting of interest and fees are deposited quarterly as returns are generated.
  • Secured by Real Estate
    Mortgages are backed by the security of real estate, rigorous underwriting, and risk management practices.
  • Higher Returns
    Earn above-market, risk-adjusted average annualized returns with lower volatility than stocks and mutual funds.
  • Low Barrier to Entry
    Invest with smaller amounts of capital without the need to qualify for a mortgage, conduct due diligence, or manage physical property.
  • Diversification
    Investment risk is spread over loans across multiple property types and geographies, creating more stability by balancing out risk and return.

8% - 12%

Target Annualized
Return  

$1.5 Billion

Mortgage Loans Closed by Affiliate Company,
Myers Capital 

Over 25

Years in Business,
Myers Capital

Number of States 
We Lend In  

48

Ready to Get Started?

Learn more about our investment opportunities.
Scheduled a confidential call today.

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