PRIVATE LENDING • REAL ESTATE • INFORMED DECISIONS

You do not have to buy a rental property or manage tenants to learn about real estate lending. Explore how private loans work, what property collateral means, and which questions to ask before putting your money to work.

Start with a conversation about your goals, timeline, and comfort with risk.

Whether you are a nurse, physician, business owner, working professional, retiree, or someone exploring what to do with savings beyond your emergency reserve, you can start by learning the basics.

Your occupation does not determine eligibility. Participation in any specific opportunity depends on its structure, applicable requirements, and your circumstances. Do not commit money you need for living expenses or near-term obligations.

A property-secured loan generally uses a mortgage or deed of trust to identify real estate as collateral. A promissory note sets out repayment terms. Before deciding, review the property value, existing debt, lien priority, borrower, use of funds, repayment source, and the documents establishing your rights.

Collateral is not a guarantee. Property values can decline, borrowers can default, and enforcing a lien can take time and cost money. You could lose some or all of your principal. Whether a particular opportunity is secured—and in what position—must be confirmed in its documents.

Some self-directed IRAs may hold qualifying private loans, subject to custodian policies and tax rules. A retirement account does not make an investment risk-free or automatically eligible.

Before considering a loan, ask your custodian and tax adviser about permitted assets, prohibited transactions, disqualified persons, fees, liquidity, and how documents and payments must be handled. Do not move IRA funds into a personal account to make an investment.

Five years is our standard proposed term, with seven years negotiable by mutual agreement. These examples assume 12% annual interest and monthly principal-and-interest payments.

Five years: $50,000 pays approximately $1,112.22 monthly over 60 months: $16,733 total interest and $66,733 total payments.

Negotiated seven years: $50,000 pays approximately $882.64 monthly over 84 months: $24,141 total interest and $74,141 total payments.

Payments include repayment of original principal, not just income. Neither example doubles the investment. Calculations assume on-time payments, no early payoff, fees, taxes, or defaults; the final payment may differ due to rounding. Actual rates, collateral, eligibility, and terms are established in the written loan documents.

1. Share your goals. Discuss your experience, time horizon, and interest in learning about private lending. No account numbers or sensitive financial documents are needed for an introductory inquiry.

2. Understand the details. Ask about the borrower, collateral, lien position, fees, repayment plan, eligibility, and potential conflicts.

3. Review independently. If an opportunity is presented, review its written terms with your own legal, tax, and financial advisers before deciding.

Prefer to reach out directly? Call 605-854-5686 or send an inquiry.

This page provides general education and an invitation to learn more. It does not establish an offer, eligibility, availability, or specific investment terms. Any transaction is subject to applicable requirements and definitive documentation. Real estate lending involves risk, including illiquidity and loss of principal. JC13 Solutions LLC does not provide personalized legal, tax, or investment advice.