TESTIMONIALS

Thank you Great Northern Mortgage for the superior handling of my home mortgage package. My attorney Ike Dibia was also impressed with your work in creating the best loan possible. I look forward to any opportunity to recommend your team.

Lissa Luke
Attorney At Law

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HOME / Private Lender - FAQ  



Invest with us and make up to 22% profit on your investment!

How does it work?
What is a private lending?
How am I going to be protected?
Where are you buying these properties?
What is the term?
What is the return on investment?
What is the minimum amount required to be on the private lender’s network list?
Will I see the property before I will be required to lend the money?
At what point do I have to make a decision to lend?
Who handles all the paperwork?
What is your Principal’s professional background?
Where is your company’s office?
Who borrows at high rates and why?
Tell me about your company/companies?
I think I would not be able to sleep if I would become a private lender.
My friend told me that I could get more than 12% in return if I would invest in the stock market.
Do you think I should talk to my attorney or CPA before making a decision to join the network?
How do I use my IRA or pension plan?
What is your company’s Privacy Policy?
What are my options if Great Northern or the borrowing LLC does not pay?


Q: How does it work?
A: Our Company is in the business of buying distressed properties (residential and commercial) located in Manhattan, Brooklyn, Queens and Nassau County.  Once we locate the property, we evaluate the deal. If the deal makes sense for everybody involved in the transaction, we buy this undervalued property in the name of one of our LLCs.  We are very conservative in our choices. The maximum loan amount is based on 65-75% ARV (after repair value), which means that after all expenses (purchase, closing and rehabilitation costs, if any) the private investor still has at least 25-35% equity in the subject property available. See our Private Lending Process for more information.

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Q: What is a private lending?
A: A private lending is a loan made by a private individual or a corporate entity to a real estate investor that is secured by real estate. Private Loan Investors are given a first or second mortgage that secures their legal interest in the property thus securing their investment. We offer very low LTV (Loan to Value) ratios to our Private Lenders, and this means additional security on the investment.

For example, if a property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property. That's a 75% loan-to-value ratio.

As a lender, it is in your best interest to minimize the risk and maximize return. As a lender, you should always have a 25% safety cushion. We don't violate this rule, because your security is at stake.

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Q: How am I going to be protected?
A:  When we buy a property, the money private lender put into a deal is secured by the following:

  1. Mortgage – a legal document, which states that you are a first position lien holder and you can foreclose on the property in case of default;

  2. Note – a legal document, which states that a borrowing entity will pay you an agreed upon interest;

  3. Home Owner’s Insurance where you will be added as additional insured in case something happens to the property;

  4. The private lender has always at least 25-30% equity in the property.  

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Q: Where are you buying these properties?
A: We buying distress properties (residential and commercial) located in Manhattan, Brooklyn, Queens and Nassau County.

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Q: What is the term?
A: We usually borrow money for six - eight months. This is enough time to buy the property, renovate and sell it. Sometimes, we may use the funds up to 12 months.

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Q: What is the return on investment?
A:The rate we are currently paying is 12% per annum plus one point (one percent of the loan amount), which are usually rolled into the loan amount and paid when the property is sold unless different terms are negotiated. If the property is sold within six months, at the closing you will be paid the principal balance of the promissory note, six months of interest, and one point. If you would do another transaction on the same terms during the same calendar year, your actual annual rate of return would be 14%. For more details as to how you can make up to 22% annually, see our Private Lending Programs and our Private Lending Process.  

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Q: What is the minimum amount required to be on the private lender’s network list?
A:  $100,000. Please be advised that you should not lend money if the amount you plan to lend will be more than 10% of your total net worth in any single investment transaction.

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Q: Will I see the property before I will be required to lend the money?
A: Yes. You will inspect the property and have an absolute right to decide not to lend on this particular property.

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Q: At what point do I have to make a decision to lend?
A: Once you agree to fund the project, you will be required, within two business days of the signing of the Letter of Intent, to transfer 10% of the purchase price to the attorney’s escrow account. Once the 10% deposit is transferred, you will not be able to change your mind. You will be contractually obligated to lend the rest of the money at the closing. If circumstances beyond your control arise and you would request a return of funds, we will do our best to substitute you with another lender and return your deposit.  

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Q: Who handles all the paperwork?
A: Attorneys and title companies.

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Q: What is your Principal’s professional background?
A: The Founder and CEO is Igor Noble. He has been investing in real estate from 1992. He is an attorney in the State of New York and was concentrating on Real Estate practice before he formed Great Northern Mortgage Corp. in 2004. From 2004 Mr. Noble was actively involved in commercial and residential financing, and investing in real estate in New York and Florida.  Mr. Noble lives with his wife and three children in Hewlett Harbor, New York.

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Q: Where is your company’s office?
A: 68-60 Austin Street, Suite 302, Forest Hills, NY 11375

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Q: Who borrows at high rates and why?
A: Investors like us do, because we have learned in our business that it is not the cost of money that matters, but quick access to the funds so we can capitalize on opportunities. Our company can acquire good deals on properties because we can act with lightning speed and can close with cash. Private loans give us this competitive advantage over other investors who take weeks to go through the bank approval process in order to purchase properties. Additionally, if a real estate investor locates a good deal on a property, many times the bank wants to loan on the purchase price not the value of the house, thus penalizing the investor for finding a great deal. Having access to money is generally a deciding factor in investing in real estate, so paying a higher interest rate is irrelevant when compared with the risk of losing the deal.

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Q: Tell me about your company/companies?
A: Great Northern Family of Companies consists of Great Northern Realty, Corp. and Great Northern Mortgage, Corp. We are a team of professionals that focus on real estate investments and services. On the investment side of the business, we buy, renovate, and sell distressed undervalued commercial and residential properties. On the service side of the business, we provide commercial and residential financing, short sale negotiations and loan modifications, we do credit repair to individuals with blemished, not perfect credit. We are proud members of New York Better Business Bureau, New York and National Associations of Mortgage Brokers, local Bar Associations, ETRUST organization, which make sure that our companies' actual use of personal information complies with the sated policies.

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Q: I think I would not be able to sleep if I would become a private lender.
A: In this case please keep your money in your IRA, CD, and/or saving accounts. We are only looking for private funding with individuals able to see the big picture and individuals who understand the concept of real estate investing. We do have available funds to finance the projects. However, when the lifetime opportunity presents, we want to make sure we have enough capital to win it.  

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Q: My friend told me that I could get more than 12% in return if I would invest in the stock market.
A: This maybe a true statement. Please remember, however, that you can lose your whole stock investment in a matter of days. What we are offering is the security, stability and the guaranteed return of your investment.

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Q: Do you think I should talk to my attorney or CPA before making a decision to join the network?
A: Yes. We want you feel comfortable during your decision making process. We advise you to talk to your attorney, CPA and maybe financial planner to analyze your personal financial situation and see if this is the right decision for you to make.

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Q: How do I use my IRA or pension plan?
A: Making real estate loans is a widely accepted use for IRA and other Retirement Plans. Most people do not know that you can make private mortgage loans using the funds which are already in your IRA's and other retirement plans. Think of the power of loaning out funds at high interest rates that are Tax free or Tax Deferred!

In order for you to use retirement accounts for loans they must first be administered by a third party custodian. One custodian we commonly work with is Equity Trust Company. You can visit them on the web at www.trustetc.com or simply talk to us and we'll help you with the set up of your account.

After selecting your custodian, you simply send a transfer form to them and they will do all of the work for you. Once you have done that you are ready to make private mortgage loans. From there, you simply notify your custodian about the investment you are looking to make and they send the check for the gross amount of the loan. Even better, we can do all the work for you. You just sign a few documents, sit back, relax and wait for your money to grow tax free or deferred.

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Q: What is your company’s Privacy Policy?
A:  We will not sell or share any personal information about you except as permitted by law. The security of your personal information is very important to Great Northern Family of Companies and we take a number of steps to safeguard it. For example:

  • We limit access to personal information to those employees or agents who assist us in providing requested products and services to you. Employees are required to comply with our strict policies and procedures regarding the handling of your personal information. Employees who violate these policies are subject to our normal disciplinary process.

  • We maintain electronic, physical, and procedural safeguards that comply with federal regulations to protect your nonpublic personal information.

  • We use industry standard data encryption technologies when transferring and receiving consumer data on our website.

  • We devote considerable resources to the maintenance of secure Internet communications to help ensure that your transactions with us are conducted in a safe environment.

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Q: What are my options if Great Northern or a borrowing LLC does not pay?
A: First of all, we have never defaulted on a private lender note. Integrity and commitment are essential parts of our business and we only make sound investment decisions. However, here is the answer to the question:

  1. We could restructure the payment schedule on the note. For example, let's say we are behind on payments to you. We can and would like to keep the house, but can not come up with enough money to bring you current in one lump sum. You could let us continue to make regular payments and we would make additional payments towards our arrears, or you could simply add the arrears to the principal balance and extend the term of the loan. This means you would be collecting interest on interest for the entire remainder of the loan. There are always ways to work it out if both sides are willing.

  2. Have us deed you the property. This is an opportunity for you to get this real estate property at a greatly discounted price. When this happens, you can create tremendous profit by reselling the house.

  3. If left with no other choice, you can simply foreclose. Foreclosure is not as time consuming and costly of a process as most people think. You would send your note and the mortgage to an attorney and ask to start foreclosure. All you have to do then is sit back and wait. Nine times out of ten, before foreclosure is complete, someone will be calling your attorney's office with a payoff letter, and your loan will get paid off. When this happens, you will collect all accrued interest, your principal balance, and all attorneys' fees, court costs, and all other expenses you have incurred in connection with your loan.

    If you end up with a house, that does not mean you have to keep it. It can be sold fast enough at below market price and still produce a profit over and above the already high yield on your loan.


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If you are a private investor or an individual who would like to join our private lender’s network, or would like to get more information, please submit a form below and we will contact you shortly. If you would like to reach Mr. Noble directly, his email is inoble@GNCommercial.com, phone 1-877-IGOR NOBLE.

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