Fixed Income Options, Fixed Income Market, Fixed Income Products


Are your earning a 5% yield?  Check out this option as one of your fixed income products!  This is a short-term strategy which can enhance your fixed income options of your long-term strategies.  It involves lending to commercial owners making improvements to their properties.  Each project puts construction workers back to work.  There are three different opportunities.  Each comes with a promissory note stating you will receive your monthly interest payments and the money returned at the end of the term; plus, a lien is placed on the property’s title.  Since 2007, thousands of these contracts have been processed and every private lender has received their monthly interest payments on time and the money returned at the end of the term.  You will be given the opportunity to roll-over your money (with any additional sums) at the end of the term.  Note: your money cannot be returned until the term ends.  The fixed income market has yielded low interest rates for years.  Let’s review the three fixed income products.

(1) The “First Position Commerce Mortgage” is a 12-month bridge loan for improvements on debt-free commercial properties.  As a private lender, you will earn 5% with a $100,000 minimum, 6% with a $500,000 minimum, and 7% with a $1,000,000 minimum.  A $100,000 Bank CD earning 0.35% pays 26.17/month.  A $100,000 FPCM earning 5% pays $416.67/month.  If your retirement plan includes fixed indexed annuity purchase, the combined total is used to meet the minimum. 

(2) The “Construction Loan” is an 18-month contract paying 6% with a $200,000 minimum.  The commercial property may have a first mortgage.  In the event of a default, the company’s promissory note states you will receive your monthly interest payments and the money returned at the end of the term no matter what happens.

(3) The “Co-Lending Opportunity” is a 9-month contract paying a 6% annualize interest rate.  It is like the FPCM – meaning the property has no debt.      

In every case, the borrower can be loaned up to 60% (loan-to-value ratio) of the property’s value.  You pay no fees or commissions.  100% of your money goes to work immediately.  These projects are not real estate investment trusts, securitues or long-term mortgages.  No one has ever lost any money. 

Wally Mackey, Retirement Planner

Sycamore Group - Financial Adviser