The Hidden Bank Always Has Funds To Lend

Private Mortgage Notes      The Hidden Banks

Simply stated, private mortgages are similar to loans you can get from the local bank which lends cash to buy  real estate. The banker (Mortgagee) lends the cash and the Mortgagor (you) pay back the cash over time plus interest. You own your home and the bank’s depositors are happy to make interest on their money. Everybody Wins!

"Private Mortgage" Holders are little Hidden Banks. Sellers can use the value (hidden bank) in their real estate to sell the property to a potential buyer. The property owner uses a Promissory Note by which the buyer pays the seller for the property on a periodic basis with interest, usually monthly.  The buyer becomes the property owner and the pays the seller over time just like he would a conventional bank.

Privately financed loans are generally easier to get than bank loans. The Mortgagee is usually someone who wants more investment return on his investment than he or she could get in the stock market or through CD's. These loans usually carry a higher rate of interest than bank loans, but banks have made mortgages very difficult to obtain except for those with perfect credit. However, even perfect credit doesn't guarantee getting a mortgage.

Bob Sivori

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Comment by Mona Gupta on April 30, 2014 at 2:03pm

Hi Bob

I am interested in creative financing to acquire a distressed large Hotel. Please send me more information at

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