We frequently give our private lenders the opportunity of making loans on newly purchased properties, as well as secured loans against high equity properties we own, and earn interest rates that are double or triple the rates you can get on bank CDs.
How is the money used?
As a professional real estate investor we need to fund new purchases, raise money to fix up, maintain and occupy our properties… plus cover the other costs associated with buying and selling houses.
Why don’t you go to banks or mortgage lenders?
Banks and other lenders require applications, approvals and must follow guidelines imposed on the banking industry. Then there are limits to the number of loans they want to make to any one company or investor. On top of that, the time it takes for their approval process is never certain.
We can move much faster without these limitations by using private lenders. That allows us to negotiate more profitable deals while offering homeowners a quick and easy sale without new loan or deal breaking contingencies.
How can you afford to pay double or triple CD rates?
We make our money by providing valuable services to the sellers, buyers, renters and private lenders we work with. By cutting out the middlemen, we can avoid the costs normally paid out for real estate commissions, mortgage broker fees, loan fees and property management fees.
We also know how to get full appraised value from our buyers and avoid making price concessions. We can occupy houses quickly to avoid holding costs and we know how to fix up and maintain properties for less money than most people must pay.
We just won’t buy a property unless it makes sense for everyone involved.