Frequently Asked Questions

Our goal is to purchase our homes below market value so that we build instant equity into the home the minute we close on the deal. Once the house is under contract, but prior to when we close on the purchase, we present our private money lenders (PML’s) with an opportunity to invest. This means our PML’s will fund the purchase price, the renovation costs (or both) and/or all of our holding costs. Our PML’s also have an opportunity to earn double digit returns, unlike the returns we typically see in the bank, stock market or retirement accounts, with a protected, secured and insured asset.  

I’ll provide a promissory note summarizing the terms and conditions of your loan, I’ll obtain a builders risk insurance policy listing you as a beneficiary/loss payee and as I mentioned earlier, I’ll also record a mortgage against the property with your name attached to it so that I can’t sell the house without your written consent.

We make our money when we buy. That said, when we buy below market value and build instant equity in the home, when we obtain wholesale pricing from our contractors and when we work with a team of industry experts, we are able to provide our investors with higher returns. Also, depending on the deal, we are able to eliminate the realtor commissions, broker fees, loan fees, etc.

Banks have a very time consuming and cumbersome process. We can’t close quickly if we work with a bank. Most of the homes we buy require a quick close in order for our offer to be competitive. Also, many of the homes we purchase are non-conforming (don’t have functional plumbing, may have mold, no kitchen or bathrooms, etc.) so most banks typically won’t lend on those types of properties. Plus, banks will cap the number of loans that they’ll fund. 

No. Your funds will be attached to one property secured by a mortgage and you’ll have your own separate set of loan docs. On occasion, depending on the size of the deal, I may have multiple lenders on one deal but each lender will have their own separate set of loan docs and each lender will be assigned a separate lien position. 

All of my contracts are set up with a 12 month term but my goal is to pay you back ASAP. As soon as the renovated home sells, you will receive your principal plus interest back in one lump sum at closing. Your name and balance due will be captured on the HUD statement as a lender. Also, I will take care of filling out all of the loan docs on your behalf so that all you need to do is review and approve them. I will also cover your attorney fees if you’d like him/her to review the loan docs. They are very straightforwardand easy to read.