904-217-5385
BECOME AN INVESTOR
What is private lending?
When we have isolated a home that is well under market value we give our private lenders an opportunity to fund the purchase and rehab of the home. And earn high interest rates that are double or triple the rates you can get on bank CDs and other Traditional Investment Plans.
How is the money used?
Monies will be allocated to, purchase price of property, renovations, carrying costs, cost to resell, and small buffer for unexpected expenses.
Why don’t you get a traditional loan?
There are many reasons but the main one is time and negotiation leverage. Many of the homes we are purchasing are in need of quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Also, our leverage is far greater when we purchase using cash funds. Many traditional home sales fall out of contract because of financing issues. This allows us to negotiate a much lower purchase price and reduce our risk.
Lending guidelines are also continually changing are require applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
How can you afford to pay such high returns?
We make our money on the purchase. Yes, we pay very high returns but it allows us to purchase below a retail purchaser. That instantly creates thousands of dollars in equity at purchase. Also, we cut out the middlemen in a typical transaction such as commissions, mortgage broker fees, loan fees, and our attorney costs are lower because there is less work for them to review.
We also employ marketing strategies as soon as we purchase the home. Typical realtors don’t start this process until it’s too late. Often times we are able to find our own buyers allowing us to secure a strong sales price and save on sales commissions. Our renovation process is also down to a science with crews that know we are not retail clients. We pay wholesale prices to all contractors and typically get bulk discounts on all materials.
We are buying so conservative and undervalued that we are able to offer our buyers a fully renovated home at or below everything else in the neighborhood. We walk away from 100’s of “Close” deals and won’t buy unless it makes sense for everyone involved.