Private lending program
Company Overview
Cherrywood Loop Partners is a family-owned and operated real estate investment business that specializes in the first position, performing notes secured by vacant land and multi-family properties throughout the country. Founded in 2021, Cherrywood Loop Partners is proud to provide services in the following areas:
- Transactional Funding
- Real Estate Note Acquisitions and Sales
- Hard Money Lending
- Real Estate Equity Partnerships
With a pipeline averaging 12 deals per month, Cherrywood Loop Partners is proud to support both real estate investors as they rejuvenate their local communities, and property owners as they achieve their dream of land ownership.
Our mission
We exist to improve lives through real estate. We provide investors with access to capital that keeps their businesses running strong. And we provide liquidity to holders of owner-financed notes.
Our staff operates with the highest level of integrity and our commitment to continuous improvement sets a precedent of excellence in business operations and client service.
Our CORE VALUES
Integrity
We believe in performing to the highest ethical and moral standards.
We practice doing the right thing - with every transaction.
We treat our clients and colleagues with trust and respect.
Operational Excellence
We striving for excellence which requires a commitment to setting high standards and continuously challenging ourselves to exceed them.
We achieve excellence not only technical skills, but also a strong work ethic, a positive attitude, and a willingness to learn and adapt.
Philanthropy
We give back to the communities where we operate.
We invest in women-owned businesses.
Why Land?
Simplicity
Without the hassles of tenants, cracked foundations, leaking roofs or blown water heaters, vacant land offers one of the most straightforward asset classes to evaluate and manage in real estate.
Scalability
Vacant land is much simpler, our team is able to scale across multiple markets to deliver the highest quality investment opportunities for our investors.
High Demand for Capital
Very few banks lend on vacant land. This limited capital pool creates a huge demand for our services. That demand allows us to selectndeals with quality borrowers at rates that outperform "traditional" real estate assets.
Faster Resale Process
In the unfortunate event that we must reposess a property, vacant land requires the least amount of effort to market and liqudate the asset resulting in faster capital recapture.
Our Business Model
private lending process
What is Private Lending?
A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a mortgage or assignment of collateral that secures their legal interest in the property and secures their investment. When we have isolated a note or piece of vacant land that is well under market value, we give our private lenders an opportunity to fund the purchase. Through that process, the lender can yield extremely high interest rates – often double the rates you can get on bank CD’s and other traditional investment plans.
Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream - while at the same time, provide excellent security and safety for your principal investment. You can do what the banks have been doing for years…make a profitable return on investments backed by real estate.
There is no other investment vehicle like it.
Our Process
Private lender funds the deal
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender receives documents securing the loan
Lender receives documents securing the loan
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender receives documents securing the loan
Note is purchased and onboarded for servicing OR Land is purchased and development begins
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Lender begins receiving monthly payments OR Land is sold and the Lender receives principal and interest
Let's Work Together - While note investing can be a very passive investment, some work is required, especially in the beginning to get the deals set up and running smoothly. Every investor is different, so you decide how involved or passive you want to be.
Terms & Conditions
Protect Your Investment
Mortgages offer the banks solid, long-term, fixed returns. You can put yourself in the position of the bank by directing your investment capital, including retirement funds to well-secured real estate mortgages. Mortgages have ultimate safety because if a default occurs, the bank can recover its investment as the first lien holder on the property.
Each asset we acquire is put through a rigorous evaluation process in order to assess its profitability before the property is ever purchased. Integrity is an essential part of our business, and we only make sound investment decisions. Also, for your protection, you are also provided these documents to secure your investment capital:
Promissory Note: This instrument documents the terms of the lending agreement and avoids 'misremembering' key details.
Deed of Trust/Mortgage or Assignment of Collateral: This is the document that is recorded with the county clerk and recorder to publicly secure your investment against the real property that we are providing as collateral.
Liability or Hazard Insurance: The borrower is required to carry insurance. As a Mortgagee, you will be notified and made whole in case the property is damaged.
Next Steps
If we haven’t already, it is important to discuss the details together.
We will need a clear definition of what your goals are including your initial budget, preferences for short- vs. long-term investing, etc.
At that point, we will present you with any current opportunities that fit your criteria or contact you as soon as we have one that fits.
If you have any interest in this opportunity, please contact our office by phone at
(510) 746-2508 or click the link to the right to send an email to hello@cherrywoodloop.com.
Referral Program
Word of mouth is how we are able to work with private lenders like you. We greatly appreciate it when clients like you pass our information on to anyone that may be interested in the opportunity to be a lender.
Once you’ve done a few deals with us and you’ve learned how we’re purchasing notes, you may attempt to do it on your own.
If that is your goal, we’re happy to help you any way we can.
frequently asked questions
What is private lending?
When we find a note or equity partnership opportunity under market value, we give our private lenders an opportunity to fund the purchase and collect the cash flow. Lenders can also earn high-interest rates - generally double what you can get in bank CDs and other Traditional Investment Plans.
How is the money used?
We buy real estate notes and work with select note servicers to gather all appropriate documentation to establish the transition of payments or we buy vacant land at discount and fund the development process.
How can you afford to pay such high returns?
Few banks lend on vacant land. This limited capital pool creates a huge demand for our services. And that demand allows us to cherry-pick deals with quality borrowers at rates that outperform "traditional" real estate assets.
What if inflation rises and my money is stuck in a long-term investment?
We buy notes at a discount deep enough to ensure better-than-average returns in traditional markets. So when inflation rises, your cash flow still maintains its purchasing power. We also prefer to invest in shorter-term investments to minimize our exposure to inflation risk over long periods of time.
What if note payors don't pay?
We prefer to work with our payors to restructure payment plans that help them get back on track and preserve our investment and projected returns. When that is not possible, we can exercise our right to reposess the property.
Are you really helping note owners?
Customers have questions, you have answers. Display the most frequently asked questions, so everybody benefits.
What interest rate do you typically pay your private lenders?
We currently pay twice what a typical bank CD is paying. Our rates will fluctuate very little all depending on the quality of the deal presented. Most of our lenders are paid from 10%. The lower the purchase price, we can sometimes afford to pay a little higher rate to make sure our lenders make it worth their time.
How long will my funds be held?
The hold time will depend on the terms of the note. Most are set up for 5-10 years. And a portion of your funds will be returned with each regular payment. However, when we use your money for land development projects, we typically need the capital for only 12-24 months.
Is the IRS Approved to use Retirement Accounts for this?
Yes, these are established tax guidelines, and it is completely legal. However, we always recommend the services of a custodian to invest retirement funds tax deferred or tax-free.
Is there a guarantee on my investment?
No. There is no government-backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate that backs the note. If at any time we were to default on the note, you have the legal right to take the property. We plan for the worst, and the notes we buy are secured by thousands of dollars of equity in the property.
What kinds of fees should I expect?
Even when we use your funds to purchase notes that have a professional loan servicer, we ensure the that borrower pays those fees. So the price and yield we quote you is your true net yield.
How much does it cost to lend money to you?
It is our policy to pay for all the closing costs so that your entire investment goes to work for you. While we collect a fee for our services, the price and yield we quote you is your true net yield.