How the Process Works:
It’s pretty simple, really. We find an extremely undervalued property to purchase and then renovate with the funds that you as the investor have invested. At closing, you receive a mortgage on the home along with other important documents. Next, we conduct the property renovation. Once the renovations are complete, (typically 3-6 months depending on the size of the project), we’ll list and sell the property. When it’s time for closing, you’ll receive your principle plus interest. It’s just that simple! The goal is to keep turning that money for you and keep you making substantial profits, to give you the trust and confidence to continually invest with us. Our goal is to building a long term, mutually beneficial relationship with you!
A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. When we have purchased a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Through that process, the lender can yield extremely high rates of return, typically 3 to 10 times the rate you can get on bank CD’s and other traditional investment plans.
Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream, while providing excellent security and safety for your principle investment at the same time. This is your opportunity to make a profitable return on your investment, all backed by real estate. There is no other investment vehicle like it.
We Protect Our Lenders
Mortgages offer the banks solid, long-term, fixed returns. You can put yourself in the position of the bank by directing your investment capital, including retirement funds, to well-secured real estate mortgages. Mortgages have ultimate safety because if default occurs, the bank can recover its investment as the first lien holder on the property.
Each property we acquire is put through a rigorous evaluation process in order to assess the profitability before the property is ever purchased. We pride ourselves on making sound investment decisions.
For your protection, you are provided the following documents to secure your investment capital:
- Promissory Note: Your collateral for your investment capital.
- Deed of Trust/Mortgage: The document that is recorded with the county clerk and recorder to publicly secure your investment against the real property that we are providing as collateral.
- Hazard Insurance Policy: You as the private lender would be listed as the “Mortgagee” for your protection in case of fire or natural disaster, etc.
We pay for a title search as well as a title policy on the home just as we would in a typical transaction. You’ll be named as a mortgagee and notified if the insurance was not kept current. In the event of any damage to the property, insurance distributions would be used to rebuild or repair the property, or used to repay you.