Troisky, Inc

Private Money Lenders also known as Hard Money Lenders are constantly evolving. With Traditional Banks, borrowers can borrow money for longer terms at much lower interest rates (usually 3 times less than borrowing Hard Money).  However, due to the recent economic disaster, banks are now Ultra conservative and for the most part, seem to only lend to people who have almost perfect credit and, ironically, don't need to borrow the money.  This unfortunate over tightening of credit has cause a major financial and credit crisis.  Our economy is suffering because Banks are refusing to play their roles to lend responsibly and strategically to investors and businesses that need the money to run and expand their operations and/or buy investment properties.

So Private Money Lenders are stepping up, now more than ever, to fill the much needed lending void.  However, playing in the Hard Money Loans arena should be reserved for the experienced investors not for the beginners or the faint of heart.  There are big risks and rewards so be very careful if you decide to borrow Hard Money to fund your investment deals. Make no mistake:  Hard Money Loans are very expensive but will serve their purpose when you find the right investment opportunity.

Remember:  If you cannot make a reasonable return, even after paying the high interest hard money, then it's NOT a good enough deal.  Do your homework!

Whatever your perspective is about Banks and Private Money Lenders, borrowers should be responsible and smart when taking on these short-term, high-interest, hard money loans.  The questions borrowers should always ask before committing themselves to these private money loans are:

1.  Can I afford to pay for the interest and eventually pay back the hard money loan in a reasonably short period of time?

2.  What am I borrowing the money for and how long do I plan to keep the money for?
3.  Will my investment be able to make a profit from the money borrowed to cover the debt and pay back the loan?  Or will the interest be too high that it will eat up all of my profits?

4.  If the Investment that I borrowed the money for does not go through like my initial projections, will I be able to give up the collateral to the Hard Money Lender without putting myself and my family in financial jeopardy?  
5.  Do I have  the resources and/or the income to afford to pay the monthly payments for the high interest?

6.  What is my Exit Strategy?

While banks are conventional sources of financing for real estate, investments, and other purposes, private money is offered by individuals or organizations that usually have non-traditional qualifying guidelines. There are much higher risks associated with private lending for both the lender and borrowers. But in exchange, there is traditionally less "red tape" and regulation.  Private money is usually very expensive. When there is a higher risk associated with a particular transaction it is common for a Private Money Lender to charge an interest rate 3-4 times above the going market rate that Banks would charge.

At Troisky, having been on both sides of the transaction, we understand both perspectives, as a Borrower and as a Hard Money Lender.  We hope to share our experiences so we can bring Private Money Lending to light and help clarify some issues in order for both sides to have a better understanding of what the other side is thinking.  We hope this will help Borrowers and Lenders put things into perspective and understand that they need to come together and work with each other so both sides will benefit.  An ideal loan transaction is when Lenders get paid their interest on time, and borrowers can afford the interest payments and still make a healthy profit to afford to pay back that debt or solve a situation that they are borrowing that money for.  Nobody really wins when the Borrowers can't afford to pay and the Lenders have to foreclose on the property.

Loan Parameters we would invest in:

1.Short term, private money loans in the Sacramento, Elk Grove, Roseville, Yuba City, Marysville, and surrounding Bay Areas.

2. Loans from $30,000 to $750,000 with terms from 6 to 36 months.

3. Non-Owner Occupied investment real estate properties and projects.

4. Single Family and Multi-Family, and Commercial properties.

5. Loans up to 65% of the After Repaired Value.

Private Money Trust Deed Investments is simply investments by private individuals and companies in loans secured by real estate. Most trust deed investments are relatively short-term loans (maturity under 5 years, with most loans maturing from 6-24 months) made to professional real estate investors. In the current economic climate professional real estate investors are buying properties at foreclosure sales for bargain basement prices, fixing-up these properties, and reselling them for a profit or renting them out for a cash flow. Banks are reluctant to lend to this market not because the loans are particularly risky, but because banks have a great deal of bad real estate loans on their balance sheets as a consequence of the loose lending practices to the sub-prime market in recent years. Presently, banks are not willing to make real estate loans unless they fit a very strict set of criteria. Banks often do not want to lend to opportunistic real estate investors because the property which is security for the loan is not “move-in-ready condition” at the time of loan funding.  These properties usually need some repairs. For this reason, real estate investors have limited financing options available to them, and Private Money Lenders in this market are able to command interest rates 3-4 times the conventional financing you can get at the bank.

Borrowers are usually experienced, professional real estate investors who can get a high return to be able to cover the high-interest, short-term loans.

Loan To Value or Risk margin of safety is the difference between the loan amount, and the value of the underlying property, also known as the Loan To Value (LTV). The most important aspect of Trust Deed Investing is that if the borrower does not perform, the lender can foreclose on the property and sell it to recoup the investment, plus any accrued past due interest. If the loan is sufficiently conservative, i.e. the property value is high relative to the loan amount (Low LTV), then the investment should not lose money even if the borrower defaults on the loan. Well structured trust deed investments might have a 65% loan-to-value (LTV) or lower to establish a good "equity cushion" in order to protect the investor.

At Troisky Capital, we make it our Standard Business Practice to conduct our Private Money Lending and all other businesses with Complete Transparency. Our Transparent Process establishes 4 goals:

With all the current financial shake ups and economic meltdowns happening all over the world, we are suddenly faced with the harsh reality that the Big Banks aren't playing fair and we cannot trust them. With all the CORRUPT Bank Executives, CEOs , and government officials EXPOSED, we need to rely more on Private Lenders to help the average Americans finance their dreams and investment opportunities. We need to send a loud and clear message that, as Tax Paying Americans, we have a right to know how the representatives on Capitol Hill, Big Corporation, and Big Banks are planning to spend our money and fix this problem that they are partly responsible for. It's time to ask for Accountability and Transparency on where our tax dollars are actually going! It's time for us to gain some control and help each other out so we can reduce our heavy reliance on the big banks in our financial future. Let's get together and come up with a plan to mutually benefit each other so we can help get America back on it's feet and become the Land of Opportunity it has been and can be.

One way to do this is for those individuals and companies that have the means and resources to step up and look into private money trust deed investing for a healthy 8%-12% Annual Yield (Much better than putting this money with a bank and getting less than a 1/2% return). Seasoned real estate investors are happy to pay 8%-12% interest to borrow money from Private Lenders so they can purchase properties for deep discounts, fix them up, and sell them for a 25%+ Profit or rent them out for Cash Flow. This is definitely a great way for private individuals to mutually benefit by working with each other.
 

Let's talk over a cup of coffee. At Troisky Capital, that's how we like to do business. We want to make sure to keep it simple and that you feel comfortable to do business with us. We are a grass roots Company that rely on word of mouth and referrals from satisfied customers. We strive to play an active role to be a part of the community and culture where we conduct our business.

We've been in business since 1999 and we've seen companies come and go due to the fluctuations of the market. At Troisky, we've experienced the same growing pains and have successfully made healthy profits during the good times, but have also experienced some steep losses during the bad times. But through it all, we've learn valuable life lessons that makes us who we are today. Through the tough experiences, we've learned from our mistakes and improved our business strategies by not take anything for granted.

Through the "irrational exuberance" of the 1990s and the "doom-and-gloom" of today, our entrepreneurial spirit has prevailed and we've overcome all odds in order to continue to conduct "business as usual". We invite you to work with our team of experienced professionals and we will work hard to gain your business and provide you with exceptional, friendly service. We hope to inspire you and share our experiences (good and bad) in the business of real estate investments so you can learn from our successes as well as our setbacks.  We will provide you with valuable insights and educational resources to help you build your investment foundation and give you an advantage on investing so you can be properly prepared and weather any financial storms that might come your way. We hope to develop strategic alliances with you and be a part of your investment team in order to help you fund your deals and build your own version of the "American Dream".

Private Money Lending is relationship-based lending. The truth is, a good Private Money Lender is hard to find because Private Money Lending is not really a regulated industry and so there is not much information about it. But establishing a relationship with a good Private Money Lender so you can have access to quick capital is a strategic partnership that is extremely important for every successful real estate investor.

A true private money lender should not base his decision to loan solely on the credit of the borrower. But more importantly, what is the true Loan To Value of the property, and does this borrower have a prior relationship and good payment history with the lender? Because the truth is if you have good credit and can show an ability to pay, we know investors would rather go to a Traditional Bank and get much lower interest rates and better terms instead of trying to borrow from a Private Money Lender.

At Troisky, we understand the reason you would loan from a Private Money Lender, instead of going to a Traditional Bank, is so you can cut through the "red tape" and close the deal quickly.  Sometimes access to capital quickly may allow you to get the deal that you would otherwise get rejected if you go through the slow and painful process of traditional bank financing. Therefore, we want to establish a relationship with you and understand your situation better. This will help us qualify you for a loan that fits your investment criteria, in a timely manner.