Approved Capital: Our Company
Mortgages are one of the oldest, and are considered by many financial advisors, to be one of the safest forms of investment for the passive investor. Each year trillions of dollars are invested in conforming residential and commercial mortgages by banks, insurance companies, and pension funds. Private parties are able to invest in traditional mortgages through mutual funds, purchase of mortgage backed securities, or collateralized mortgage obligations. Historically, because conforming mortgages are carefully underwritten and require superior borrower credit and excellent collateral, they have proven to be very safe investments that in recent years have produced returns in the range of 2% to 5% per year. An investment in mortgages is considerably more attractive than Certificates of Deposit and Government Bonds that have consistently produced lowering returning yields.
Through Approved Funding Corp., our Residential Mortgage Banking entity, traditional mortgages are originated and eventually sold to the secondary market through Wall Street or large financial institutions. Loans that are otherwise superior but lack traditional liquidity are passed to Approved Capital, our Private Lending Division. These are Mortgages that don't meet the criteria of the highly regulated banks and insurance companies. All loans are protected funds collateralized by real estate with substantial equity remaining in each venture. This allows for protection of our lien in case of default. Typically these loans are mortgages that are asset-based with leveraged equity of less than 70- 75% in each of the properties that are financed.
If you are looking to broaden your investment portfolio to include real estate or mortgages but don't want the liability and burden of managing your investment, investing in private mortgages through our Participation Fund or Performance Fund may be the solution. We are continually working with sophisticated individuals, retirement/pension plans, trusts, or other entities to invest either in our existing mortgages or new syndications. All investors must meet the criteria set forth in our Investor Criteria summary.
Approved Capital Corp. is a privately owned diversified financial company formed in 2001. Through this corporation as well as its affiliate, Approved Funding, the management team has been involved in the private funding sector for well over two decades combined. Our focus on service, combined with our vast comprehension and experience continues to help us earn outstanding accolades for providing professional services to the real estate and finance industry in a timely and responsive manner.
