If you are interested in investing in our community with a high rate of return and cash-flow then we should talk.
HOW DOES PRIVATE LENDING WITH US WORK?
When an investment property becomes available, whether it be a longer buy and hold investment or quicker rehab deal, if it’s determined and analyzed to deliver a great rate of success based on the numbers and market conditions. Private lending provides the opportunity to earn a high rate on some or all of the amount needed to secure these investment opportunities. The sum of monies would provide the amount needed to secure the investment property, renovations and/or other services needed to bring the property to either rentable (buy and hold) condition or selling for a much higher value (rehab). At this point the property would either be able to acquire a conventional loan to buy and hold or selling it outright for a nice profit returning your agreed amount funded plus a higher than average interest.
HOW DO YOU KNOW HOW SECURE THE INVESTMENT IS PRIOR TO LENDING MONEY?
If you become one of our private lenders, you will receive a prospectus of the investment property that provides all of the detailed information and numbers for you to evaluate its high earning potential. The prospectus will provide the following:
- Location
- Address
- Comparable specs (Sold Properties)
- Renovation and costs of services needed to bring the property up to standards or resale condition.
- The principal sum needed to complete the deal
WHAT TYPE OF RETURNS CAN I EXPECT ON MY PRINCIPAL INVESTMENT?
The lending terms are negotiated between both parties on a per deal basis and you can expect a high than normal ROI. The rate is based on the risk that is involved for the investment property. You can decide if you’re looking for a short term investment or longer term investment. This is negotiated prior to financing. Rates generally range anywhere between 8 and 15%. depending on the risk that is involved on the real estate deal. You can also negotiate late fees within the terms of your agreement.
WHAT DIFFERENT TYPES OF FINANCING CAN PRIVATE LENDERS USE TO GET A DEAL?
There are a few types for financing an investment property:
- The quickest and easiest method is always cash. Many private money lenders don’t mind getting 7%-18% return on investment (ROI) in 6-12 months, as opposed to what you’re currently getting in your savings account (1/2%- 1.5%).
- If you’re thinking of a creative way to become a private lender without coming up with your own cash, securing a line of credit on current assets is another popular way of financing a project and making a nice interest spread on the deal.
- Another type of financing would include converting your current IRA into a Self-Directed IRA.
- Inheritance, pension plans, cash value of life insurance, etc. Consult your financial advisor before pursuing to use any of these options.
WHAT IS THE DOWNSIDE OF PRIVATE LENDING?
As with any investment, there is always risk and a chance of something going wrong. However, your principal is secured by the property itself. Unlike the stock market, in which if something goes wrong, your principal investment could be reduced to nothing. If there is a loan default, you will acquire a property already having a high amount of equity which then can be sold either as-is or have the property rehab finished to sell for a much higher value and profit.
HOW CAN I GET STARTED AS ONE OF YOUR PRIVATE LENDERS?
Give us a call today. We’ll set up a time to meet for coffee or lunch and plan a tour of our current projects. Each of our investors and investments is unique. We will need to make sure we have a good fit–540-344-0359