Private Lending with Lakes Area Home Buyers, Inc.

Dear Investor,

Lakes Area Home Buyers buys several houses each month and has been since 1998.

When we pay cash for a house, we use private lenders instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield when using their money to fund our deals.

Maximum loan to value is 70%. This is to protect you, our investor. That means we will borrow up to $70,000 on a property valued at $100,000. The money we borrow is secured by a 1st note and mortgage. Our investor gets 9-11% interest. Monthly payments include interest only. Interest only payments keep 100% of your principal working for you. Most loans have a balloon payment due in 2 to 5 years. The term is decided by the investor’s desires.

Sometimes we borrow offering a 2nd mortgage. For example, if there is a first mortgage for $50,000, then we can offer our investor a second mortgage of (up to) $25,000 to keep within our 70% LTV limits. In the case of a second position, we pay 9-14% interest.

All private lenders get:

  • Promissory Note
  • Mortgage recorded against the property
  • Added on to the hazard insurance as the mortgagee
  • Copy of an appraisal or market analysis report
  • Lender’s title insurance

We pay all costs involved to close the transaction. There is no cost to the investor.

We are not a licensed mortgage broker in the state of Minnesota, so we do not have the ability to broker investor funds with other borrowers without permission. We would only consider brokering your investment funds upon your approval. In other words, we never co-mingle or pool funds together. One investor... one note and mortgage.

To invest, we would first find out how much you are looking to tie up and for how long. We would then look for a deal that will met your criteria. Once located, I would call you, give you all the details and then you would decide to participate or not. There's never any obligation until after you approve the deal.

When you decide on a deal, you’ll send your funds directly to the closing agent at a local title company when we’re ready to close. We'll never accept your funds directly.

For some investors we can offer selling existing notes secured by real estate at a discount to yield 11-15%. These types of deals are less common but opportunities to buy discounted notes occur now and then. Discounted notes would require further explanation regarding risks.

All the houses used as collateral will be located near White Bear Lake or Roseville in Washington and Ramsey counties. We occasionally have deals in Chisago county if that is your preference.

A majority of my private lenders currently include many of my family members, seasoned business contacts and previous sellers I bought property from. Only recently have I opened this to others visiting our website.

If you have funds in a retirement account, you can use them to invest. The IRS requires the use of an approved custodian to qualify for tax deferred or tax free gains. I recommend Entrust ( to create a self-directed real estate retirement account. We've helped many of our clients establish a self directed IRA account through Entrust and I would be glad to discuss this with you further.

To learn more, or to be added to our private investor list, please call or submit this form. Your questions are always welcome. Please read our disclaimer here.


Marc Hoffmann
President, Lakes Area Home Buyers, Inc.
St. Paul, Minnesota

Call us today to find out how we can help (612)-208-7878, 24 hour recorded message