Saxe Mortgage Company is a private money (sometimes called hard money) lender that finances real estate transactions, i.e. purchase, refinances, 1st and
2nds, based on high equity and creditworthiness of the borrower that for some reason does not qualify for a conventional loan. Due to the current problems in the credit markets stemming from the sub-prime fallout and bank illiquidity, especially jumbo loans, the demand for private money lending has increased exponentially. These loans are financed by a private investor base instead of institutional lines of credit.
Now is a great time to invest in equity rich San Francisco deeds of trust. The Federal Reserve has substantially cut interest rates. Consequently, bank rates have substantially diminished. CDs that used to pay 6% now pay 0.5%. Savings and retirement accounts that are sitting in regular accounts or CDs are generating no income.
Saxe Mortgage pays investors 9% and higher secured by choice properties primarily in the San Francisco Bay Area. Additionally, banks are cutting and freezing home equity lines of credit. With the Prime Rate currently at 4%, many investors are investing their equity lines paying 10%. People who are not using their equity lines are losing them.