Invest in Hard Money Loans

Invest in Hard Money Loans

Little City Investments makes and services private, first lien mortgage loans to proven, Austin-area real estate investors and developers. Loans are secured by real estate at a maximum loan-to-value ratio of 70%. Investing in hard money loans is an unusually secure investment. Our investors are paid monthly interest and usually earn 10%. Since our loans are relatively expensive for the borrower, most are paid off between 4 and 8 months from origination. Case studies are presented here.

Contact us for more information. We can show you how our private mortgages work, testimonials from our current investors, returns paid this year, and other valuable information about the program.

Contact us now about investment opportunities

Maximize Your Investment

Our investors often employ additional strategies to maximize their ROI from our hard money loans. The methods outlined below can increase the yield on your portfolio and allow you maximum flexibility.

Create Mortgages Through Your Retirement Account

Financial planners are increasingly recommending that investors use an individual retirement account to earn tax-exempt or tax-deferred income on real estate investments. Mortgages allow you to invest in real estate without actually having to own and manage property. We’re happy to work with you and your self-directed IRA custodian to invest in our mortgage loans.

Equity Trust and Entrust are two of the most respected IRA custodians and both websites provide a wealth of information on using self-directed IRAs to invest in hard money loans.

Borrow Against Your Portfolio

If you don’t have enough funds in your self-directed IRA, you can still apply leverage to maximize your investments. Many banks will allow you to borrow a percentage of your stock or bond portfolio and use the proceeds to make real estate notes with us. These lines of credit are often offered at very favorable terms, as low as LIBOR (the rate banks charge each other – 1% as of this writing) in some cases.

Check out our frequently asked questions.