Invest in private mortgages and hard money loans
Learn how to invest in hard money loans and private mortgages secured by real estate. Get the free investor guide, then talk with Tompkins Lending, a Rochester, NY firm whose investors have funded Upstate New York mortgages since 1986.
- Free guide: how it works, the risks and what to check
- No deals shown publicly, by design (here's why)
- Current markets: Rochester, Syracuse and Buffalo
Hard Money Investment isn't a lender, broker-dealer or investment adviser, and nothing here is an offer to sell securities.
What is a private mortgage investment?
A private mortgage investment is money you put into a short-term real estate loan made by a private firm instead of a bank. Real estate investors use these loans, often called hard money loans, to buy, renovate or hold property, and the loan is secured by a first mortgage on that property.
You earn the interest the property owner pays. When the property sells or is refinanced, the loan is paid off and your money comes back.
Why people invest in private mortgages
People who invest in hard money loans and private mortgages usually want income from real estate without owning or managing property.
Ways to invest in private mortgages
- Through an established mortgage firm. The firm finds and reviews each deal and handles the paperwork and payments; you choose which mortgages to fund.
- Through a mortgage fund. Your money is pooled across many mortgages run by a manager.
- By buying existing mortgage notes. You buy a loan someone else made, often at a discount, and collect on it yourself.
The free investor guide compares all three.
Hard money, private mortgages and trust deeds
You'll see this investment called several things. A private lending investment, a hard money investment and a private mortgage investment usually all mean the same thing: money in a short-term loan secured by real estate.
First mortgage
The investment is first in line to be repaid from the property.
Trust deed
In states that use deeds of trust, like California, the same investment is called trust deed investing.
Hard money
The name for short-term real estate loans priced for speed rather than credit scores.
Why you won't see deals on this site
Most private mortgage firms raise money from investors under the SEC's Rule 506(b). It allows private offerings, but bars general solicitation and advertising to market them. SEC Rule 506(b)
In practice that means a firm can only offer a specific mortgage to investors it already has a substantive relationship with: it knows who you are, your experience and your finances. A public website full of deals would break that rule.
So this site does the first step: education. You get the free guide, answer a few questions, and the firm gets to know you. Specific mortgages come later, privately, through the firm's own documents.
Guide, conversation, then deals
Get the free investor guide
Answer four quick questions and download it.
Get to know the firm
Tompkins Lending calls you and confirms whether you're accredited.
Then see specific mortgages
Only after that conversation, through the firm's own documents.
What to check before you invest
- How much equity sits behind the mortgage, and how the property's value was set
- That the investment is a first mortgage, recorded with the county
- Title insurance and property insurance on the property
- Who collects payments, what that costs and what happens if they stop
- The firm's track record and how long it has been in business
- Whether the investment is open only to accredited investors
Everything above, in one guide
- How private mortgage investments work
- Three ways to invest, compared
- Why deals aren't advertised, and the accredited investor rules
- Due-diligence checklist and questions to ask
- Market numbers for Rochester, Syracuse and Buffalo
Current markets in Upstate New York
Tompkins Lending's investors fund mortgages on investment property in Rochester, Syracuse and Buffalo. These are cities of renters and old houses: most homes are rented, and much of the housing predates 1940, so local property investors keep buying and renovating.
Compare the marketsU.S. Census Bureau, ACS 2020–2024 medians. Rent ÷ value is a rough gauge landlords use, not a loan return. QuickFacts QuickFacts QuickFacts
Tompkins Lending, Rochester, NY
Since 1986, Tompkins Lending's investors have funded millions of dollars of mortgages on Upstate New York real estate, and many have stayed with the firm for decades.
Owner Tim Tompkins is a New York State licensed real estate broker, serves on the City of Rochester Zoning Board of Appeals, and is president of the Rochester Police Foundation.
How this site worksPrivate mortgage investing questions
Is investing in private mortgages a good investment?
It can be for investors who can leave money in place until a loan pays off and who accept the risk. The appeal is interest income and a loan secured by real estate. It's a poor fit if you need your money on short notice or can't afford a loss.
Why can't I see any deals on this site?
Most private mortgage firms raise money under the SEC's Rule 506(b), which bars advertising specific investments to the public. SEC Investors need a real relationship with the firm first. That's why you get the guide, talk with the firm, and only then see specific mortgages.
What returns can I expect?
This site doesn't publish return figures. Returns depend on each mortgage's terms, which the firm explains only after getting to know you. Be careful with anyone who promises a return.
Is it safe?
No investment is safe. A first mortgage gives a claim on the property, but payments can stop, foreclosure takes time and money, and values can fall. Read the risks of investing in private mortgages first.
How much money do I need to start?
The law sets no minimum; each firm sets its own. Tell us roughly what you're considering and the firm will tell you what fits.
What's in the free investor guide?
How private mortgage investments work, the ways to invest, why deals aren't advertised, the accredited investor rules, a due-diligence checklist, the risks and the numbers for each market.
What happens next
- You get the free investor guide right away.
- Tompkins Lending calls to get to know you.
- It confirms whether you're an accredited investor.
- Only after that does it share specific mortgages, through its own documents.
Every investment carries risk, including the loss of the money you invest.