Private money loans are given to real estate investors and secured by real estate. In our case, the Property Acquisitions team identifies a potential investment property well under market value and offers private investors an opportunity to fund the purchase and renovation. In doing so investors will generate a return on their investment when the property is completed and sold.
Your loan will be used to fund both the property purchase and any renovation work needed to sell the property for maximum profits.
No. We pay all closing costs, and your entire investment is applied to the property purchase and renovation.
No. Your capital will be used to secure and renovate one property, and you will be the only investor in that property. This will all be secured and confirmed by a deed of trust.
We move very quickly, and traditional banks and lenders do not. Many of the deals we close in two weeks or less, however 30-60 days are required to finalize a mortgage. Closing with cash eliminates banks and traditional lenders, and we're able to negotiate and create greater value for our investors.
We currently pay 4-5 times what a typical bank CD is paying. Our rates will fluctuate very little depending on the purchase price and necessary renovation. Our private lenders are paid 9%, and sometimes we're able to pay more. We provide additional bonuses to our investors when profits exceed expectations.
You're protected because YOU hold the deed. If we were to default you have the legal right to foreclose. We plan for everything, and if the property is not as profitable as estimated it will not impact your ROI.
In this unlikely scenario the property would simply transfer to you.
In most cases we buy properties for 45% - 60% below market value therefore creating significant equity. This is how 9% can be offered.
Sometimes we'll find a buyer immediately. In that case you as the investor may choose to invest in another property.
Most of our loans are set at 6-12 months depending on the property and renovation. If, for example, you're investing in a tear down, it could take a bit longer since these require added layers of inspections and approvals. When presented with an opportunity we'll share a timeline.
We pay principle and interest at closing.
It's a great question and one we've given a lot of thought to over the years. When we invest in properties we're thinking ahead. Our properties usually sell within 2 months of completion.
We purchase property insurance and cover your investment.
