Frequently Asked Questions (FAQS)
If I have declared Bankruptcy, can I still qualify for a mortgage?
How long does it take to complete a mortgage transaction?
Is there anything else I should know?
The investment process sounds pretty good, why isn't everyone doing it?
If I have declared Bankruptcy, can I still qualify for a mortgage?
Some lenders will consider your mortgage application depending on the circumstances surrounding your backrupcy and your credit history since the bankruptcy has been discharged. The best way to determine if you can qualify for a mortgage after being discharged from bankruptcy is to call us so we can find an appropriate program.
How long does it take to complete a mortgage transaction?
If all information requested by the lender (i.e. income verification, down payment verification and property details) are given to the broker in a timely manner, than the transaction can be completed in as little as two weeks.
Is there anything else I should know?
YES! Depending on your circumstances, you may be eligible to use your pre-tax IRA funds as the capital for your investment. Check with a Self-Directed IRA Custodian (several current investor use Equity Trust Corp) for information about how you can have more control over your IRA investments. Self-Directed IRA’s specifically address the type of investment you would be involved with through Northwestern Financial.
The investment process sounds pretty good, why isn't everyone doing it?
In the wrong hands, real estate investments CAN be risky! However, we have been in this business for a combined 90+ years. We are big enough to handle large investments, but small enough that we still evaluate every project individually. Putting your trust in Northwestern FInancial is smart because of our experience, expertise, and commitment to integrity in everything we do.
What is my security on this type of investment?
1. An independent title company is actually involved in the closing. At each closing there is an automatic and immediate assignment of the mortgage to you - you legally become the FIRST LIEN HOLDER on any property financed with your investment.
2. Our policy permits loans to be made for NO MORE THAN 65% of the independently appraised value of the property. This allows for a 35% appraised value cushion on the property (which eventually translates to "equity").
3. The property is insured for at least the mortgage amount.
What's the minimum amount I can invest?
Investments overall range from the low $30,000’s to several hundred-thousands. The majority of loans average from $40k to $80k. We have many clients with very large sums invested – these are spread over several projects and reinvested at the client’s discrection each time a loan is paid off. We have other clients who start slowly with mid-range investments, then participate in more projects once they get a grasp on how the process works. Other clients have one fixed amount to invest and this sum is reinvested as often as the client wishes. Let us know the amount you are interested in investing and we should be able to find a project or projects which will suit your goals.