A lender funds a loan
The loan is to LJH Investments, LLC, under a signed agreement.
Private lending, secured by real estate
Lending on real estate, explained plainly.
I buy mortgage notes and work with private lenders. Here's how it works, how a lender is secured, and what can go wrong. No pressure, no jargon.
All investing has risk, including loss of principal.
What protects your money
Illustration- Home value
- $150,000
- Your money in the deal
- $85,000
- Cushion
- $65,000
My track record
Past results don't guarantee future results.
How your money works
Here's exactly where your money goes.
YouYour loan
LJH InvestmentsOwes you, in writing
First mortgage notesAssigned to you, recorded
Real estateBehind every note
Your loan is secured
A collateral assignment of specific first mortgage notes is recorded with the county. You get copies.
Borrowers pay a servicer
Licensed third-party servicers collect the payments on those notes, not me.
The lender is paid
On the schedule in the signed agreement. Every payment shows up in the investor portal.
See exactly how your loan is securedWhat I'll show you before you lend
Free guide, 12 pages
The Private Lender's Guide to Lending on Mortgage Notes
Five questions to ask before you lend to any note investor. Including me.
- The 5 questions to ask, and what a good answer sounds like
- How your loan is secured, strongest to weakest
- A worked example of how one bad valuation turns a profit into a loss
- A document checklist and 12 red flags
- A printable scorecard to bring to any call
What protects a lender
Why lenders choose LJH.
I find the deals, grade every note, and handle the problems. Here's what protects you while I do.
Documents before money
You review the loan papers and the notes behind your loan with your own attorney before you commit a dollar.
Same standards for my own money
My own self-directed IRA buys notes using the same buy box I use for lender deals. It's kept completely separate from lender money.
Secured by recorded collateral
Your loan is tied to specific first mortgage notes through a collateral assignment recorded with the county. My attorney drafts the documents. You review them with yours.
Licensed third-party servicing
Borrower payments are collected by licensed third-party servicers, not by me. Clean records, no matter what.
Protected if something happens to me
I carry a life insurance policy set up to pay my lenders back. Your money doesn't depend on me being here.
IRA money welcome
Lend from a self-directed IRA. I work with your custodian on the paperwork.
From my lenders
In their words.
Honestly, it's been one of the easiest investments I've made. I don't have to manage tenants, deal with repairs, or worry about the day-to-day headaches that come with owning property. I especially love getting my quarterly payments. It's simple, predictable, and I've been extremely happy with the experience.
I love it. I'm extremely happy with how everything has worked out. It's been a great experience, and I'd absolutely do it again.
Individual experiences. Results vary and are not guaranteed.
Meet Larry Hoffman
I was a landlord. Now I'd rather own the mortgage.
I've invested in real estate since 2006. I spent years on the landlord side: tenants, repairs, turnovers. Today I buy first mortgage notes instead. The borrower takes care of the house. I focus on the loan.
I have an engineering degree from the University of Cincinnati, so I trust documents over pitches. I wrote Mailbox Money Retirement, host the In The Know podcast, and teach note investing every week.
Read my storyHow I grade a deal
Person. Property. Paperwork.
A good spreadsheet is not enough. Every note I look at goes through the same three checks.
Person
Who is the borrower? What's their payment history? Can they keep paying?
Property
What's it worth? What shape is it in? Are taxes and insurance current?
Paperwork
Is the title clean? Is it a first lien? Are the assignments and servicing records in order?
See my full due diligence checklist
See it on real deals
Bought for 12 cents on the dollar. Paid off.
A real note in Wilson, NC, from the first look to the payoff.
For lenders: what a real cushion looks like.
Read the storyThe $41,000 mobile home note
Getting the offer accepted was the easy part. Here's what I check before I close.
For lenders: why a mobile home needs a bigger cushion.
Read the breakdownWorking together
It starts with a conversation, not a commitment.
We talk
Tell me your goals, time frame, and how involved you want to be. We'll both know fast if it's a fit.
You review
I walk you through a real deal and the documents. Your attorney or CPA reviews the terms. Ask me anything.
I do the work
Once you're in, I find, buy, and oversee the notes. You get updates on how things are going.
Straight answers
Questions lenders ask me.
Am I buying a note or lending to LJH?
You're lending to LJH. You get a promissory note from LJH Investments, LLC that sets your amount, rate, and term. Your loan is secured by specific first mortgage notes I buy.
What secures my money?
Specific first mortgage notes, through a collateral assignment recorded with the county. That ties your loan to real notes and puts your interest on public record. You get a copy of everything.
What if a borrower stops paying?
It happens. I plan for it. Every deal gets reviewed for servicing, reserves, workout options, and exit paths before I buy. We'll talk through how that affects you.
Are returns guaranteed?
No. Be careful with anyone who tells you theirs are. Real estate behind a note lowers the risk. It doesn't remove it.