Service To Investor – Program Overview
LF Partners, LLC Private Lender’s Network™ (PLN) consists of Individual Investors, IRA’s, Trusts, Pension Plans, LLC’s, Corporations, etc. The PLN is setup to fund 1st Position Trust Deeds, also known mortgage loans. When an investor becomes a Member of the PLN, they become a “private lender” and gain access to high quality mortgage loan investments through LF Partners, LLC. The invested monies are secured by loans on residential & commercial investment real estate properties in the State of NJ. Lenders are placed directly on the note & deed of trust which can be fractionalized among several lenders or wholly funded by one lender. This is a passive investment opportunity for the Lender; Evergreen Servicing, LLC is the Servicer for the PLN and manages all loan servicing functions including payment processing, property insurance & tax management, construction control, payoffs, defaults and other servicing matters. The short terms loans are typically 12-18 months with interest only payments due monthly. Interest payments are distributed monthly to Lenders.
The loans must meet strict underwriting and due diligence requirements administered by LF Partners, LLC. All loans funded through the PLN are individually processed and fully underwritten before funded. LF Partners, LLC endeavors to only fund loans that will perform to the high standards the company has established for the PLN in order to maximize the stability of the cash flow and rate of return for Lenders in the PLN. Lenders will pay no buying/selling commissions or fees to lend money through the PLN. All commissions and fees associated with the origination and servicing of the loans are paid by the Borrower. Lenders should consider their investment in a mortgage loan as illiquid for a minimum of the term of each loan they fund (typically 12-18 months).
The Servicer’s income is derived from upfront fees, loan servicing fees paid by the Borrower such as, servicing fees, late payment fees, escalated interest fees and others. For example, a loan may be originated at 14% to the Borrower and 12% is passed on to the Lender with a 2% servicing fee paid to LF Partners, LLC. Lenders can achieve 10-12% returns through the PLN and the income is characterized as interest income to the Lenders for taxation purposes.
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