Explore Your Investment Options

Secured Versus Unsecured

  • Secured Loan

    Your investment is “secured” by a lien, in the form of a mortgage, against a specific property. This means if the property goes into default, you hold first right to gain possession of the property.

    Due to the intricacies of this form of loan, we generally require a minimum amount of $90,000 and slightly lower APR than an “unsecured loan”.

    More About Secured Loans

  • Unsecured Loan

    Instead of securing your loan with a lien against a specific property, we offer a personal guarantee to protect your loan. This loan is made directly to Fifth Hammer Properties LLC based on the credibility of the company and its owners, backed by a “Promissory Note”. In the event of default, the assets of the company and the personal assets of its owners are forfeited to repay the loan.

    More About Personal Guarantees

Loan Terms

Once we determine the type of loan (secured or unsecured), we need to identify the terms of the loan.

  1. Amount You are Willing to Loan

  2. Desired Length of Loan (Typically 12 month)

  3. Desired Interest Rate of the Loan (APR)

Legal Documents

After the type of loan is determine and the terms are set, our attorney will draft the following documents to be signed:

  1. Promissory Note: Spelling out the agreed upon terms.

  2. Personal Guarantee: Ties Fifth Hammer Properties LLC and all its owners’ personal assets to the loan.

Tax Documents

At the appropriate time of the loan process and point in the tax season, our accountant will prepare the following:

  1. W-9 for you to fill out and return.

  2. 1099-INT for you to file with your taxes.