We offer sellers all cash to buy their property. Our long-term buy and hold approach usually allows us to offer a seller more than any other buyer. When offers are accepted, we fund our purchases using private investors... no banks involved. These investors get a note and mortgage backed by a large cushion of equity in a property we own. These real estate notes pay fixed interest up to 500% higher than current bank CD or money market rates essentially making our private lenders a "profit partner" in each deal. This can be a great way to generate growth or income on your conservative cash or retirement funds, without speculation or taking unnecessary risks… especially today.

I’ve prepared a list of frequently asked questions below for your review and if I missed any feel free to call or email us.

We need to develop a relationship with you first before investing with us. This allows us to get to know you and your investing goals so that we can help you achieve them.

Once you’ve decided that you’d like to take advantage of the great returns with note investing, this is how the process works:

1. When we have a note that fits when you're looking for, we'll contact you to tell you about it and if it's good with you...

2. Then we'll send you a loan commitment document (simple easy-to-understand 1 page agreement) that summarizes your investment and all terms of the loan and you can digitally sign that.

3. If you're using funds from an IRA or 401k, we can do an email intro with the our top-notch SDIRA company so you can get your SDIRA setup (so that you can invest in notes). They will get your account setup within 24 hours and initiate the transfer process (from your 401k or IRA). The transfer process takes 1 to 3 weeks (depending on how long it takes your current investment custodian to process the paperwork). Also, we don’t get any “kickbacks” or anything of the sort from our recommended providers (insurance company, property management, SDIRA company, etc.). We simply work with them because they are the best at what they do and they offer great rates. Investing with a SDIRA allows your funds to grow tax-free.

4. On the day of closing, you wire funds and in return you will receive a note and mortgage (deed of trust in some states) or if you're buying a contract for deed, you will receive an assignment of contract as well as a warranty deed. We pay all customary costs and fees so the amount you transfer is the amount of your investment. (you are responsible for wire fees from your financial institution)

Here are some quick facts:

• I pay my private lenders 6-8% interest. I prefer paying monthly interest only payments supported by the income on the property I can pay principle and interest if needed. Interest only payments keep my lenders entire investment working and they make more money
• I prefer my note payments are due on the 15th of each month allowing the properties income to help cover the payment.
• My minimum investment is $25,000.
• I am confident that I can payoff an investor early with 60 days advance notice by replacing them with another private investor.
• I offer a minimum earned interest of 6 months in the rare case I pay off my investor in less than 6 months. Since they probably do not want their money back that fast I will attempt to substitute the collateral or reinvest their payoff into another property.
• Interest begins on the day their cleared funds are received.
• I will never pool funds together. If I need more than one lender to fund a deal, I will give one lender a lien and the other lender a junior lien.
• I always keep valid hazard insurance on all my properties and each and every lender on the property will be added to the policy as a mortgagee.
• I will never accept private money from my lender until they have received a promissory note and the security instrument (deed of trust/mortgage).
• I will never pressure an investor to do a deal. It's pass or play. If they pass I will offer it to my next lender waiting for a deal. If I cannot find private money I will use hard money lenders as a backup.
• I keep all my promises. But I can never offer to "guarantee" my lenders investment as that may violate federal or state rules and regulations related to securities.

How am I protected?

We send our investors a complete loan commitment document to review (before you invest). This explains all of the details of the transaction. When an investor decides to invest they know all of the facts of the property before they move forward. At closing, your funds are fully secured and collateralized by a First Lien (Deed of Trust) on the Real Estate along with a note. You'll also be added on to the hazard insurance as the mortgagee. You'll also get a copy of a market analysis report showing the value of the property.

What does it mean to become one of your private lenders?

When we have a want to borrow money against the equity in a property we own or a property we’re buying, we give our private lenders an opportunity to make us the loan… and earn high interest rates that are double or triple the rates you can get on bank CDs.

How will you be using my money?

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.For properties we already own and manage, there are times when we want to convert some of our equity into cash — without selling the property. This cash may be used to fund our house buying business, pay off other real estate notes that come due and handle unexpected cash needs.

What kind of interest do you pay?

We generally pay 6% on a first lien position and 8% on a second lien position. Or you can lend on the full value and earn 6.5%.

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 house fast to avoid holding costs and we know how to fix up and maintain properties for less money than most people must pay. We always formulate our purchase offers so that our buyers and sellers get a great deal.

How do you help sellers?

A lot of sellers today are having trouble finding a buyer when they decide to sell. And there are typically a lot of hassles a seller must endure to get their home sold. Using a long-term investing approach, we can offer sellers an attractive price, close or take possession whenever they want… and give them an opportunity to avoid all the hassles of selling a house.

How do you help buyers?

We offer several great programs and unique opportunities for buyers. This includes our owner financing program, our down payment assistance program and our sweat equity program. Buyers today are finding it more and more difficult to qualify for loans. Our programs help buyers get into a home they want to purchase quickly… allow them to start building equity for the future and help them avoid throwing their money away on rent.

How do you help renters?

Tenants today face more restrictive rules and application requirements laid down by landlords and property management companies. We have positioned ourselves to be very flexible and creative in getting nice folks into our homes, thereby providing a much needed service. We can even rent to folks who recently had a bankruptcy or foreclosure.

Why do you need private lenders?

When we pay cash for a house, we use private lenders instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield when using their money to fund our deals.

How long does it take for my money to grow?

Here's a quick formula for how long it will take for your money to grow, in general. Simply divide any interest rate into seventy two and your answer will be the number of years it will take you to double your money. Say you are earning 8.5% now (possible through our methods). Divide six into seventy two like this: 72 ÷ 8.5 = 12. At 8.5% interest it takes 8.4 years for your money to double. Savings accounts and CDs are paying less than 1% . That’s 72 years for your money to double.

Aren’t you concerned about housing prices going down today?

We’re prepared to hold the properties we buy for 5, 10 even 15 years. That way we’re not as concerned about near term price fluctuations in home prices as other investors are. Most of our investing plans are determined by the income we expect the property to produce now and in the future. If we think a property may do down in value then we make any adjustments needed upfront… before making an offer to buy.

What interest rate do you pay your private lenders?

We currently pay between 2 and 3 times rates offered on 5 year, FDIC insured CDs. As of the writing of this, the national average for a 5 year CD is about 1%. We currently offer our lenders 6% to 8% interest on notes secured by real estate. You can research nationwide CD rates by visiting www.bankrate.com and selecting the “CDs & Investments” tab. You’ll always now exactly what interest rate you will be locking in with us prior to making any investment.

What determines whether you pay me 8% or 10% interest?

We currently pay 6% on a mortgage in first lien position and 8% on a second or junior lien position.

How long will my investment funds be tied up?

Most of our private loans are setup on a 5 year term. However it depends on what you want and need… and what we want and need. So depending on our plans for the property, we might be able to offer you a 3 year term… or we may ask if you’re willing to commit to a 7 or 10 year plan… if that’s our preference. Regardless, you’ll always decide what term works for you on any note invest in.

What if I don’t want to go longer than 3 years?

Then we’d have to wait for a special opportunity where that would work for both of us.

What if I commit to 10 years and then need my money sooner?

Real estate notes are illiquid investments. However, our policy is to pay off (or replace) any private lender who requests an early payoff whenever we can. Sometimes a partial early payoff meets the lenders needs, allowing the rest of their money to continue to earn the high rates. We ask that you give us advance notice, preferable 60 days, so we can do whatever we can to meet your request. We would attempt to meet such a request by refinancing the property, selling the property or, most likely, finding another one of our private lender who’d like to take over your position.

Do you guarantee my interest for 10 years if I get into a 10 year note?

Your interest is fixed and locked for as long as the note is out. However we may sell or refinance the property before the full term is up. You’ll always earn your note interest until it’s paid in full. But we do have the right to pay you off early.

What if you pay me off only a month after I invest with you?

We understand that you might be liquidating investments or foregoing another investment program to get our high rates of returns. Therefore we agree in writing, spelled out in your note, that you’ll receive minimum of 6 months interest. So if we needed to pay you off sooner than expected, we would either give you the opportunity to move your mortgage to another property, or pay you off in full including a minimum of 6 months of interest earned.

Will I receive monthly payments?

In most cases you can receive monthly payments of principal and interest, or interest only. Interest only payments keep your entire initial investment working for you each month.

Can my interest accrue and grow if I don’t want payments?

In many cases yes, but it depends on the deal. Sometimes we prefer to make monthly interest payments to maintain a protective cushion of equity in the property over time. However, on smaller second mortgages, we may prefer to let the interest accrue if that works for you. That way we can simply our bookkeeping and at times avoid a negative cash flow.

If I want my interest to build up without getting payments, will you pay me a compounded rate of return?

Yes! If your main goal is growth then there’s nothing like compounded interest. The amount of interest you earn grows larger each month as the outstanding balance on your original investment grows each month. This can be quite attractive when it compounded for many years.

What is your minimum investment?

We prefer to borrow at least $30,000 when working with our private lenders. If a deal needs less than that then it may be easier for us to just use our cash reserves.

Is your investment program insured by the government?

No. There is no government backed guarantee on these privately held real estate notes. Your main protection and security is the amount of equity in the property that secures the note. With enough equity a lender can use a legal or voluntary process of taking ownership of the collateral and then (if desired) sell the property to recapture the money invested plus any costs incurred in doing so.

Has the IRS approved your program for retirement accounts?

The IRS does not approve or endorse investment programs but they do establish guidelines that must be followed in order for you to invest in real estate notes tax deferred or tax free. You may need the services of a custodian to invest retirement funds tax deferred or tax free. We have been pleased working with Specialized Trust Co. (www.specializedtrustcompany.com). We’ll be glad to answer questions about this or help get you setup right.

How do I know if there’s enough value or equity in the property to sufficiently protect my investment?

We will provide you with full details on the value, status and condition of the property whenever we present you with an opportunity to lend to us.

What are the upfront costs involved in investing with you?

It is our policy to pay for all the closing costs so that your entire investment goes to work for you. We will pay for the closing agent, doc prep fees, notary fees, overnight mail fees, bank wire fees and recording costs. We do not charge any fees or commissions to our private lenders.

What happens if the property burned down?

We’ll always keep a valid hazard insurance policy on the property to protect against causalities. You’ll be named as a mortgagee and notified if the insurance was ever not keep in full force. Insurance distributions would be used to rebuild or repair the property, or used to pay you off.

Loan positions: Will my money be pooled with other investors?

No. We do not pool funds. Your funds will fully fund one real estate note secured by a deed of trust on a property with sufficient equity as protection.

What is a junior lien?

It’s a loan secured by real estate that is positioned behind a senior mortgage. In the case of a default, a lender can seize the property through a simple deed transfer or through the legal foreclosure process. Junior lien holders need to payoff or protect any senior lien holders in order to protect their position.

How do you protect a senior lien?

You can either pay them off in full or bring their loan current (making up any back payments if needed) and then making any other payments that come due. This helps to stop or prevent a senior lender from foreclosing, allowing the junior lender to foreclosure from their position.

What happens if I don’t protect a senior lien holder?

If the senior lien holder foreclosures then junior lien holders could lose their secured position on the property, putting their entire investment at risk. This added exposure to a junior lender is why we offer a higher interest rate. Many lenders are fine being in junior positions because they get higher interest, are protected by the equity cushion and typically have enough faith in the borrower to take such risks.

If you default and don’t keep all your promises, how do I get the property?

We can’t make any guarantees but if we were in a position were we could not keep our agreements, we’d simply transfer ownership of the property to you if possible. If we did not (or could not) then you have all the legal rights of a secured lender. The best way to legally protect your interest in case of a default would be to hire an attorney. They normally would seek to get your investment back, any unpaid interest, any collection costs, all your attorney fees and maybe even more. A legal representative could advise you if it makes sense to foreclosure or seek ownership the property to protect or recoup your investment.

If you rent the property out, what happens if your tenants trash it?

We’re the property owners and it’s our responsibility to protect our property as well as to protect your collateral. We’d fix it or take care of it and you should never have to get involved in such an incidence. It would only affect you if we were in default and you repossessed the property to protect your interests.

What happens next if I want to get started?

Once we know how much you want to begin getting a higher rate of return on, and when those funds are available, we will begin looking for a deal for you. When we select one that meets your goals and investment needs, we’ll give you all the details and then you can decide to pass or play.

Can you work with people I know how might be interested in your program?

It is our policy only to work with people that we have an existing relationship with, like yourself. You can certainly refer potential lenders to us and we will be happy explain the program and begin learn more about their investment needs and goals. Once we get to know them more then there is a good chance they can also become on of our private lenders.

Are there other ways to invest?

Do you have the ability to borrow against real estate using your good credit? Do you have (or can you get) an equity line of credit on a property you own now? When you borrow at today's mortgage low rates you can generate new profits on your equity or borrowing power.

Do your payments include principal and interest or just interest?

It's up to you. Interest only payments keep 100% of your principal working for you.

Click here to schedule a call with us to talk about your investing goals.