For Loan Participants
Q. Will The Ira Group look at the deals and make sure that they are legitimate?
The Ira Group does not take responsibility in doing any due diligence and urges all participants to do their own thorough due diligence.
Q. Do I need to be an accredited investor to participate in a bridge loan?
This is a legal question between you and the bridge loan syndicator, but typically, you do not need to be accredited. As a point of reference, The Ira Group is only focusing on bridge loan participations and our legal counsel says that a loan isn't a security, so this question isn't relevant.
Q. How long will my money be tied up for?
Bridge loans, on average, range from 12 to 18 months from start to finish.
Q. What kind of returns can I expect on my money when I participate in a bridge loan?
This is the beauty of the Ira Group. We don't set returns, you do! You say the maximum loan to value that you feel comfortable at and what the minimum return you want, and the Ira Group will only send you opportunities that match.
Q. How much money do I need to participate in any one bridge loan?
The minimum amount that the Ira Group will broker between a bridge loan participant and bridge loan syndicator is $25k.
Q. What is the difference between being an investor in real estate versus being a lender?
An investor will generally be if someone is investing in buying real estate and they will own a percentage of the deal; a lender typically makes a first position loan and earns a fixed interest rate for the time their money is borrowed.
Q. Does the Ira Group make loans?
No, we just broker bridge loan participations between bridge loan participants and syndicating bridge lenders that are looking for more participants.
Q. Will the loan participants in The Ira Group database be accredited investors?
Not necessarily, however, a bridge loan syndicator can choose to filter their opportunities to only include accredited investors.
Q. What is The Ira Group charging to put out a bridge loan to their database of participants?
The Ira Group charges bridge loan syndicators an upfront $500 marketing fee to send out their bridge loan to its database of matching participants. In addition, there is a success fee of 1% for every dollar that a loan participant invests. This 1% fee is paid for every future bridge loan that the participant participates for the longer of 2 years from the initial introduction or 12 months from when they last participated, whichever is longer.