Do You Have An IRA or Any Other Investment Capital Not Getting You A High Rate Of Return…Safely?
Private Lenders ::: We Buy Houses from “Sell My House Fast” Situations
Where Do We Get The Funds to Buy Houses?
We are professional buyers of homes throughout the Dc,Maryland, Va. Area. My company can offer a homeowner a fast, all cash sale when the price meets our buying criteria. Then we borrow the funds needed for the deal from private lenders… always leaving with a safety cushion of equity. Our private lenders get a great interest rate on a note from us, secured by a recorded Deed of Trust against the property. The property is also insured with a $ 300,000 hazard insurance protection policy.
We offer private lenders to choose whether they want monthly income or have interest compound growth. The terms can range from 6 months to 3 years depending on the private lender’s needs.
How we operate…
|When we pay cash for a house, we offer a private lender the opportunity to loan the funds instead of using our own funds or loans from banks. Since we get a high return on our own cash, we can offer our private lenders a higher interest when we use their money to fund new deals.Maximum loan to value is 75%. That means we will borrow maximum $150,000 on a $200,000 property. The money we borrow is secured by a 1stnote and deed of trust (mortgage). Our private lender gets a fixed interest based on the loan and term. Monthly payments include principal and interest, or interest only, depending on the needs.Interest only payments keep 100% of principal working. Most loans will typically be for 1 year but can be 1 to 10 year terms dependent upon the needs of the private lender. Sometimes we borrow offering a 2nd deed of trust. For example, on a house worth $200,000, if there is a first mortgage for $100,000, then we can offer our private lender a second mortgage of (up to) $50,000. In the case of a second position, we pay a higher interest rate.|
Let me illustrate how they enjoy bigger profits using an example of $10,000 invested for 36 months with compounding interest. First, a bank CD paying 2% will grow to $10,612 in 36 months for a gain of $612. Next, a real estate note paying 8% will grow to $12,597 after 36 months for a gain of $2,597. Now that’s over 400% more money on the same amount invested! What a difference!
In another example, $50,000 in a CD that is earning 2% per year will give you $83.33 per month. But, a real estate note of $50,000 at 8% will give you $333.00 per month. Big difference!
For every loan, the private lenders receive:
A Promissory Note
A Deed of Trust recorded against the property
Added on to the hazard insurance as the mortgagee
A copy of any appraisals or market analysis reports
Lender’s title insurance
We pay all costs involved to close the transaction.
We never pool funds or co-mingle together. One private lender… one note and one deed of trust.
Funds in a retirement account (IRA), can be used to invest. The IRS requires the use of an approved 3rd party custodian to qualify for tax-deferred or tax-free gains.
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