Higher Returns . Fixed Rates . Secured by Real Estate . You Are in Control .
Private money lending is when a private individual gives a loan to a real estate investor to fund a purchase and sometimes the renovation of the property. The lender then gets a lien on the property (in essence taking the place of a bank) as well as a promissory note from the company to pay you back. We buy these deals at such a discount to make it profitable and we give the opportunity to a private money lender to lend on the deal to allow them to realize some incredible returns on their investment. You can take the position of a bank to capitalize on the residual income that private money lending would allow for you. You don’t have to do any of the work, we do all of that. You just send a wire and sit back and relax and we do all of the work!
Nothing! Okay, it’s not that easy, you do have to send a wire in order to fund the deal, but after that, that is all you have to do. TRUE PASSIVE INCOME!
We find the property, do the due diligence, present the opportunity to you, you give us the green light, you fund the deal the day of closing and you receive a promissory note from us at closing. Then we renovate the deal which can take anywhere from 1-4 months depending on the scope of the renovation. We then list the property and sell it (this typically takes 1-2 months). At closing you get all of your principal investment back plus 8.5% - 10.5% on the loan before we receive any money. You get paid before we get paid. Then we do it all over again on the next deal…
We negotiate with a seller to purchase their home at a large discount and begin our due diligence on the property.
We send a New Opportunity Announcement to all our Private Lenders explaining the specifics of the deal including interest rate, term and our intentions for the property. Due to quick closes, the project is typically allocated to the first private investor who commits funds to the project. Many of our private investors like there funds to be used as soon as possible, we can also put you at the front of the line by earmarking your funds to be used on the next opportunity that closes. In this case, we will have a confirmation call with you to discuss the deal details and confirm your comfortable with the opportunity.
The title search and property inspection report are completed and the necessary documents are prepared. If you decide to commit funds to the deal please make sure your funds are liquid and ready to be wired by the stated fund date. Our attorneys will prepare any necessary documentation for you to sign in order to secure your interest (Promissory Note as well as any other required docs)
Your funds will be wired on the stated fund date and you will be given a receipt for your deposit (via email). You start earning interest that day.
The title company ensures that all documents needed to close the deal have been submitted by the seller, buyer, and private investor. The transaction is recorded at the county recorder’s office and funds are disbursed. You will receive copies of the promissory note, deed of trust, title insurance policy, and hazard insurance policy. All documents are professionally drafted by a real estate attorney. You will be named as “additionally insured” on the hazard insurance policy.
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