Funding Large Loans…
I wanted to report nothing but good news here at Sun Pacific Mortgage. Last month was another record production month. We are funding an ever increasing number of loans and larger and larger loans.
To get some of the larger loans done we have had to “fractionalize” the loan. This is the formal term we use that describes having more than one investor contribute funds to get the loan done. As an example: $700,000 loan amount and 2 investors each invest $350,000. Another example: Slightly larger loan amount of $750,000, but Investor 1 funds $300,000, Investor 2 funds $200,000, Investor 3 funds $200,000 and the final Investor funds $50,000. This is a very common investment tool.
Here are some of the pros and cons of “fractionalization” from the Investors viewpoint.
Pros first: These are just a few of the reasons to do a “fractionalized” loan.
Fractionalization can be an amount from $100,000 to $1,000,000. Hopefully this description of “fractionalization” can expand the opportunities for you as the Investor.
Ken Walker & Forest Tardibuono
“The Guys in the White Hats”
CA BRE License # 01464899
NMLS # 360993