Private Lending


In this opportunity, private lending is a mortgage secured loan given to a real estate investor. Essentially, you replace the bank reaping the benefits of lending against real estate. It’s a great way to generate 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.

When we have isolated a home using investment model, our private lenders receive an investment profile and an opportunity to fund the project. The interest rates allow the lender to yield 4 or 5 times the growth when compared to bank CD’s and other traditional investment plans.

Through private money lending, you have the opportunity to become the bank


The process is simple. We find a property that meets our criteria, place an offer, and put it under contract. An investment overview is provided on the subject property for your review. Once you give us the green light, the funds are used to complete the purchase and renovate the property.  At purchase closing, you receive a mortgage and promissory note, and property insurance information.  Next is the renovation stage which you get to witness through bi-monthly updates including progress pictures.  Upon completion, we list and sell the property. When it’s time for sale closing, you’ll receive your principal plus the 10-12% interest payment.  The standard cycle is 6 months.  With your approval, the process is repeated.  A very simple method to build a long-term mutually beneficial relationship.



Here’s what the numbers would look like on a typical renovation project, with a 6 month hold (including rehab & re-sell time) with a private lender return of 10% APR.


Double digit returns from an investment backed by a real estate mortgage. Keep in mind, our loan to value is capped ensuring another layer of security. These types of protection are not offered with stocks, funds, or other investments. Also, there are no trading costs or other surprise managerial fees involved in this simple process.

In addition to the financial reward, there is another important element of working with us. You become a team member in our effort to have a tremendously positive impact on the community.

It’s a win/win opportunity for both the lender and borrower

Our equity is built in the purchase of the home, where we are buying 30-40% below a retail buyer – that creates instant equity at purchase. Also, in a typical transaction, we cut out the middleman cost such as: commissions, mortgage broker fees, loan fees; and our attorney costs are also lower because there is less work for them to review.

Because of our buying strategy, we are able to offer our buyers a fully renovated home at or below everything else in the neighborhood. We walk away from hundreds of “close” deals that do not meet our specific buying criteria, and simply won’t buy unless it makes sense for everyone involved.


You are making a 10x greater return on your money!


Private money lenders bring speed and efficiency to our transactions. Many of the homes we are purchasing are in need of quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Many traditional home sales fall out of contract because of financing issues.  Using quick cash as leverage allows us to negotiate a much lower purchase price and reduce our risk.

Being able to offer a fast closing with private funds motivates sellers to take our offer over the competition. Also, lending guidelines are continually changing and are requiring applications, approvals, junk fees and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.

On a new home purchase requiring renovations, private lender funds will be allocated to the purchase price, renovations, carrying costs, cost to resell and a small buffer for unexpected expenses. We can then produce products like these for deserving home owners.


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 default occurs, the bank can recover its investment as the first lien holder on the property.

Each property we acquire is put through a rigorous evaluation process in order to assess the 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 is your collateral for your investment capital

Deed of Trust/Mortgage: 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

Hazard Insurance Policy: This is where you as the private lender would be listed as the “Mortgagee” for your protection in case of fire or natural disaster, etc.

We do pay for a title search as well as a title policy on the home just as we would in a typical transaction. For a rental investment with a long-term note, we always keep a valid hazard insurance policy on the property to protect against causalities. You’ll be named as a mortgagee and notified if the insurance was not kept current. In the event of any damage to the property, insurance distributions would be used to rebuild or repair the property, or used to repay you.

Overview of the Closing Process

Common Ways Private Lenders Fund Deals


Cash held in most types of bank accounts can be accessed quickly and can fund your deals in minutes, instead of hours or days. Fees are generally minimal for wire transfers and cashier’s checks.

Home Equity Line of Credit

A home equity line of credit is a very powerful source of funding that many people have and don’t even think of using. Unleveraged equity is dead money and it’s not making any interest. You can easily tap into that money. It’s a way to make sure you’re in first position when we’re ready to pull the trigger and buy a property.

Personal & Business Lines of Credit

Personal loans and “signature lines of credit” can be obtained from most banks or credit unions by anyone with good credit and a stable income.

Retirement Accounts

More and more private money lenders are using their

IRA funds to invest in real estate. A self-directed IRA is essentially the same as a traditional IRA, but allows you to purchase a broader range of investments, including real estate.

Liquidated Securities & Investments

Investments are a way to put your savings to work earning more money. However, if your stocks and investments have not performed as you had expected, it might be time to consider other investments. As you know, stocks can be liquidated as and when you wish. Sometimes you need to liquidate your investments because you need the money for something you want to purchase such as real estate.

Investing With a Self Directed IRA Account

Most people think that an IRA can only be used to purchase investments like stocks and mutual funds – that’s not true! You can get private mortgage loans using the funds which are already in your IRA’S and other retirement plans.

As it pertains to lending for real estate investments, enter the Self-Directed IRA. The IRS has set forth guidelines on what you can and cannot invest in with your IRA. Many people are surprised at the scope of options available. From tax liens, gold, real estate investments and real estate notes, IRA’s are much more powerful than most people ever realized. If you add to that power of a Roth IRA which allows you to enjoy your earnings tax-free or deferred, and you’ve got a fast road to an easy retirement!

However, in order for you to use retirement accounts for loans, they must first be administered by a third party custodian. After selecting your custodian, you simply send a transfer form to them and they’ll do all the work for you, once you’ve done that you are ready to make private mortgage loans. We would be happy to recommend a local custodian we’ve worked with in the past who can assist you with setting up your account.

Investment Terms & Conditions


Minimum Investment:

When working with private lenders, $20,000 is our minimum standard investment. When first investing with us, a lower initial investment

amount may be agreed upon to ensure you’re confident when working with our company.

Mortgage Terms:

The majority of our loans are set up on a 6 month note; however, it depends on the size of the project. If we are doing a teardown and rebuild, we will have to wait on the county inspectors for many approvals – thus causing delays. We account for all of those details upfront and will give you

estimated time frame for the return on your investment. Also, we do not pool funds – your funding will be tied to one piece of property secured by a deed of trust.

Payment Schedule:

Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we will pay monthly just like a typical mortgage.

1st  or 2nd  Lien Position:

The Investor, as “mortgagor,” has the right of first lien holder and Power of Sale on the property. The 1st lien position is placed behind a senior mortgage. You are probably used to hearing the term first and second mortgage. The second mortgage is a junior lien because it’s in 2nd position. The senior lien or first mortgage must be paid prior to the 2nd lien.

Would You Like To Invest in Real Estate?

Looking to buy wholesale properties or invest your hard-earned money with returns?

Mum City Homes LLC has the experience, know-how, and infra-structure to offer you opportunities in your real estate investment endeavors, whether you are looking for a rehab project to work on OR an alternative to investing your money.

Please call us today at 860- 264-5163 if you’d like to learn more about the options that we offer.

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* Investing in financial and real estate markets involves a substantial degree of risk. There can be no assurance that the investment objectives described herein will be achieved.

** Past performance is no guarantee of future performance or that such investment opportunities will become available. These materials are intended only for discussion purposes and should not be relied upon in evaluating the merits of investing in any investment or security. Potential investors who express an interest in investing will be provided with detailed information and other documents offering documents.