Multiple Micro Mortgage Loans Needed
Thumbnail Summary
- Multiple mortgages needed, 50+ by year end.
- Principal has 700+ FICO score.
- All Florida.
- All 1st mortgages.
- Average LTV 25%.
- Approximate mix: 50% SFR, 40% mobile on owned land, 10% condo.
- All investment properties, no Dodd-Frank. Each property in its own LLC series.
- Average loan $25K.
- Our ideal loan is 30 year interest only, but we’re open to offers.
- We know the origination costs on these are more, and we can pay reasonable extra costs.
- Equity participation possible.
- We like low red tape, and have done our best to eliminate a lot of it.
Repeat Customers
We have things lined up so that we expect to do about 1 of these every week, $1-2M worth, in 2023.
Paid Monthly
By autopay direct deposit to your bank.
Low Dollar Value Each
Average loan amount is $25K.
Low Loan to Value
Average LTV is about 25%, and never over 60%. Almost nobody lets properties go into foreclosure with this much equity in them. We certainly won’t.
First Position
These are first mortgages.
No Partial Prepayments
Partial prepayments complicate bookkeeping. Our prepayment terms are simple—all or nothing.
No Regulations
These are investment loans. Dodd-Frank and other such regulations don’t apply.
Ideal Terms
We’re open to other offers, but we’ll lay out what would be ideal to us. 30 year, interest only, no points, $15K minimum (although most will be in the $25K to $30K range.)
Fast, Free, No Red Tape Closings
One of the biggest nuisances and costs of small real estate deals is all the red tape. We’ve eliminated most of it.
Fast, Free Appraisals
We like simple appraisals. Here’s an easy formula. Take the average of the county tax appraisal and the Zillow appraisal. It’s done in 5 minutes, for free, and it’s easy to verify.
Fully Title Insured
Each loan will be protected by title insurance.
Simple Inspections
Insurance companies give huge amounts of coverage with just 4-point inspections. If those kinds of inspection good enough for insurers, they’re good enough for us. Hopefully, they’ll be good enough for you, too.
No Tax or Insurance Escrow
Taxes and insurance premiums are paid quarterly. Good standing on both is easy to verify.
Equity Participation Possible
Depending on the other terms, lenders may also get some equity participation.
More Than Just an Investment
When you invest in these mortgage loans, this is far more than just a real estate investment. All of these homes are part of our Save Your Inheritance program. The families living in them now are the survivors of family members who’ve died. These are all homes where the families got behind on their property taxes and didn’t probate the properties, and the properties were headed to the tax auction. We rescued them. Now, these families won’t lose their inherited homes.
Our Motto
You may have heard the concept of doing well by doing good. We’ve added another piece to this. Besides doing well by doing good, we also like to have fun doing it.
Out of all of our programs, this is our least profitable, but, emotionally, it’s our most satisfying.
History
We started Heir Helpers as a Real Estate Investment Trust in 2018. Our focus then was buying inheritance rights from heirs before their properties were lost at tax auctions.
Before we ever did our first deal, we made a commitment to do at least 10% of our deals on a charity basis. It turned out our first deal was one of those.
In searching for families who wanted to sell their inherited properties before the tax action, we found a number of them living in their inherited properties who didn’t want to sell, but they hadn’t probated the estates. Not only were they way behind on the property taxes, because the property was still in the name of the previous owner who died, the homestead tax exemption was lost, and the property taxes went way up, sometimes more than double.
We couldn’t help all these families, but there were some we just couldn’t walk away from. We probated the estates, paid off the back taxes, and put the title in the heirs’ names so they could get the homestead tax exemption and, most important, saved the properties from the auction block.
COVID came in early 2020, and things slowed down. During that time, we formed an LLC, Cash For Heirs. In early 2022, after the COVID crisis was mostly passed, and we were ramping back up, we renamed Cash For Heirs to You Have Inherited LLC.
We also found a whole lot more families who wanted to keep their inherited properties, way more than we could help on a charity basis. So, we came up with the Save Your Inheritance program as a business model.
More Details
Even though there are consumers living in the properties, we have sufficient interest in the properties to obtain the loan completely in our name, so it is a pure investment loan. Each property will be in it own new LLC series.
All in Florida
We cover all 67 counties. About half of our deals are single family homes, 40% mobile homes on owned land, and 10% condos.