How Private Lending Works
Where your money goes, what secures it, and what happens at every step, in plain English.
What your money actually does
Your loan funds a home that Grand Peak Homebuyers LLC buys and owns. There is no buyer in place when your loan is funded. After the purchase, our LLC sells the home on seller finance terms to a family who is ready to own. Your repayment follows your signed note and does not depend on the buyer.
How seller finance works
The seller finances the purchase directly. The buyer makes monthly payments, builds equity, and owns their home, with a written contract and a recorded lien in place. No bank approval is needed.
Who the buyers are
Hard working families, including the self employed, people starting over, and those rebuilding credit. They have steady income and the drive to own, but fall outside traditional lending rules.
Why it matters to lenders
A buyer who worked hard to get a home has every reason to keep it and take care of it, which helps protect the property that secures your loan.
What secures each loan
- A promissory note that sets out the amount, rate, term, and payment schedule
- A deed of trust or mortgage recorded in the public records in first lien position on the property
- One loan per property, with no pooled funds or shared collateral
- A conservative loan to value of about 30%, because we buy homes well below typical market prices
- A title or escrow company that checks for prior liens and handles signing and recording at closing
In plain terms: if something goes wrong, the property itself, not just someone's word, is the collateral for your loan.