A Mortgage Investor purchases all rights to a mortgage and note by providing value to the original Lender equal to the principle amount of the loan. In exchange, the original Lender assigns to the Investor all of its rights to the paper, the principle and the interest payments. You own the mortgage outright while the original Lender's rights cease. The Borrower then mails a monthly mortgage payment to you directly-like millions of people send payments to banks every month. MCI creates these mortgages and sells them to you through an Assignment of Mortgage and an Allonge. You are provided copies of all documentation. Further, you can see online that you own the mortgage by referencing the County government’s website in which the mortgaged property is located.

MCI has the ability to originate mortgages from $30K to multi-million dollar deals. The mortgages are sold to you "at par" or face value (i.e. a $100K mortgage costs, at par, $100K. So, you reserve the mortgage online at www.moneyconsultants.info and then issue a check or wire to MCI for $100k). As a courtesy, MCI covers the processing fees and assignment fees. No other fees are due MCI from you. When MCI receives your payment for your mortgage, upon deposit, your interest starts the next banking business day.

Comparatively, private mortgages carry higher interest rates than conventional mortgages. In nearly every case, the mortgage will be an interest only balloon mortgage. This means that monthly payments cover interest only and do not reduce the principle. At the end of the term-usually 5-10 years-the mortgage "balloons" and the entire principle is owed to the Investor in one lump sum payment. During the life of the loan, the interest is paid monthly and directly to you. You are the lender. Simply, our mortgages put you in the beneficial position of a large mortgage company while you safely utilize this time-tested investment model.

Rates on private mortgages fluctuate much less than bank rates. Bank rates are those that you read about in your local paper or your favorite news source. As of November 2006, your return on a private mortgage can range from 10.9% to 12.9% (e.g. a $100K mortgage @ 12.00% rate of interest = $1,200.00 monthly checks mailed to you by your Borrower. Your $100K principle is never reduced and, eventually, on or before the balloon date, your Borrower will pay off the principle amount).

MCI originates mortgages on a variety of real estate types. Residential homes, raw land, vacant land, commercial, farmland, industrial-all kinds of real estate. If we can establish a conservative value and, in case of foreclosure, there is a reasonable real estate market for the property to be sold, we will lend on that property. Therefore, at any given time, many types of mortgages are offered on our investor website located at www.moneyconsultants.info.

Most of our mortgages come with a copy of a recent appraisal. These appraisals are normally something a Borrower commissions. MCI does not own, is not partnered with nor does it have any business affiliation whatsoever with any appraisal company. To discover the value of a piece of property in the marketplace as accurately as possible, we look for an honest, professional opinion. Different from a professional appraisal, MCI does regularly conduct an in-house opinion of value. Along with MCI's opinion of value, the professional appraisal is an important "voice in the room" when time comes for MCI to underwrite a loan/mortgage. In most cases, MCI uses its own money to underwrite a mortgage. We are, therefore, very conservative on our opinions of value and how we allocate our money.

The answer is: speed. Many of our clients present deals that require them to close quickly. In some cases, private mortgages that pass our due diligence process can be closed in a single business day. Most loans that pass our conservative litmus test are closed within 7 business days.

Of course, no one can predict how atrophic man-made and natural events can change any of our investments, but the "worst case" we talk about in the mortgage investment world is: the foreclosure process. Simply, when a borrower stops paying and forces the Lender to pursue a legal cause of action against that Borrower to make the Lender whole. The bottom line on foreclosure is that you will be without your monthly payment until the foreclosure is otherwise resolved; however, this does not mean that you forfeit your right to payments owed. In some cases, a foreclosure can be resolved when the Borrower pays you all past-due payments plus default interest (generally, ~18.00%) and attorney fees and costs in a lump sum. This "brings the mortgage current". In other cases, you may be approached by another investor who wants to pay you a certain price for your "underperforming" loan because they can 1) better absorb the length of time the asset will go without a return and 2) would like to make the 18.00% return on the default interest. If the foreclosure is not alternatively resolved and is pursued to its conclusion, the Borrower will be divested of its ownership interest in the property by the court and the property will be sold at public auction. Your attorney should take the steps necessary to protect your interests at the auction-such as starting off the bid at the minimum amount to satisfy all costs. After the auction, and because your loan will be in "first position" the winning bid will pay you first: your principle, default interest, late fees, prepayment penalty, past due payments, attorney's fees and costs. If there are no bids, you become the owner of the asset and may do with it what you wish (i.e. sell it, use it as collateral for another deal, rent it out for a profit). Most of the time, the investor actually makes a higher return on their money when the foreclosure process is complete-again, generally 18.00%. Please keep in mind that It is not our desire to foreclose on a person's home; we would much rather everyone make their payments and satisfy their mortgage.

If the Borrower stops paying, certified payment notice letters must be sent by the Lender to the Borrower. These letters notify the Borrower of their missed payment. Sending payment notice letters is part of "mortgage servicing" and each state is a little different in what they require. Once the certified letters have been sent and a statutory period of time has elapsed since these notifications, the mortgage can be defaulted and turned over to an attorney for foreclosure. MCI can assist you in the process of mortgage servicing.

At a minimum, the foreclosure process can take at least six (6) months and can last as long as a couple of years. During this process, your default interest continues to accrue (usually at ~18.00%). Most often than not, foreclosure becomes the most profitable route for the investor. To that end, there are private mortgage lenders who invite foreclosure due to its profitability. However, MCI is not one of those lenders. MCI strives to only write mortgages that we believe will never require foreclosure.

Typically, a bankruptcy will temporarily stall the foreclosure process. In some cases, a bankruptcy judge will be able to structure a payment plan by which the Borrower will pay you and you are assured that your investment interest is adequately protected. As opposed to unsecured credit card debt, the nature of mortgage debt is that it is secured by real estate. Therefore, if the payment plan is inadequate or your investment interest is not adequately protected, your attorney will likely succeed in having the bankruptcy judge grant a motion for relief from automatic stay. This allows the foreclosure to continue in state court. In either scenario, ultimately, a bankruptcy will not prevent you from beneficial access to your asset.

Once you buy a mortgage from MCI, we will continue to act as a resource for you. Though we do not share in the ownership of the asset, we want to continue to be a trusted source of consultation for you. Our nearly 30 years of experience can help guide you through most any mortgage service questions that you might have. During a foreclosure, our in-house legal staff can help you attain counsel, track your case, provide marginal legal advice, act as a liaison and put another set of eyes on the progress of your case. As for servicing, we are currently developing a web-based mortgage service application that will help you service your mortgages, keep track of payments, correspond with the Borrower and archive pay work and monetary ledgers.

In most states, it’s illegal to originate a private mortgage beyond those which correspond to your own properties. Most states require that you hold a Mortgage Broker's license in order to loan money privately. By law, loaning money without a license may be subject to legal review, fines and liability. For nearly 30 years, MCI has held a Mortgage Broker license in the State of Florida. Since MCI satisfies all the legal requirements and, in most cases, creates the mortgage investment vehicle in its own name, there is no need for the Investor purchasing mortgages from MCI to be licensed. MCI is unlike most private mortgage companies because it sells its mortgages wholly and exclusively to one Investor, one entity. We do not pool money. You do not get payments from MCI monthly. Your Borrower pays you directly and you entirely own the mortgage. MCI has a network of ~400 brokers who bring us deals. We scrutinize every deal-looking at nearly 10 deals to every one mortgage we write. We provide our Investors access to our system-our private mortgage engine-which we have created over time. MCI creates the mortgage and then places these mortgages on http://www.moneyconsultants.info for sale to you. MCI empowers you to look through due diligence material including pictures, appraisals, and copies of the note, mortgage and amortization schedule. Unless arrangements have been made directly with MCI to keep the mortgage reserved for a longer period, for a 72 hour period, MCI allows you to reserve any mortgage you might be interested in purchasing. During this time, the Investor should conduct a due diligence review of the materials. Once you have made the decision to purchase, simply wire or send a check to MCI and we will take care of the rest. It is that simple.

This is defined by the language contained in the mortgage. If a loan payment is postmarked more than 5 days late, a 10% late fee on that payment becomes due for that month. With our late fee policy, some late payments may actually be beneficial to the Investor. The end result is an increase in return to the investor to which the Investor would not have otherwise been entitled.

Similarly, this is defined by the language contained in the mortgage. Typically, the pre-payment penalty will be from 1-2 years and will range from 1.00-3.00%. After the pre-payment period tolls, the Borrower is free to refinance their loan without a pre-payment penalty.

MCI offers sample letters for your use for your mortgage servicing. Keep in mind that these letters are only meant to be samples. MCI encourages you to seek the advice of a competent attorney for your own personal comfort.

Yes. MCI does conduct some mortgage servicing for its Investors. The mortgage servicing terms between you and MCI are set out in our Mortgage Servicing Agreement executed between you and MCI. Additionally, MCI is working on a web-based application that will help you with your mortgage servicing. This new web system will allow you to assign a third party servicer and follow the progress of your loan in real-time.

Again, the mortgage servicing terms between you and MCI are set out in our Mortgage Servicing Agreement. Typically, the mortgage servicer is compensated by 1% of the return.