INVEST WITH US
“Above any other principle, we prioritize the integrity of our word and work tirelessly to fulfill every commitment we enter into, no matter what.” – Mike Jackson, Co Founder
WE INVEST IN WHAT WE KNOW
Our business model is a testament to our philosophy of ‘investing in what we know.’ We specialize in acquiring residential properties with low-interest rate financing, leveraging our deep understanding of the real estate market. Our approach is centered on the strategic acquisition of homes that we are intimately familiar with, both in terms of location and potential value.
We employ a unique strategy after we close: reselling these properties through owner financing. This approach allows us to extend the same financial advantages we’ve enjoyed to new homeowners while creating a win-win scenario for all parties involved. By offering attractive financing terms and capitalizing on our expertise, we not only help individuals achieve their dream of homeownership but also ensure our investments align seamlessly with our core principle of investing wisely in what we understand best.
In essence, our business embodies our commitment to prudent investments within our area of expertise, where we leverage low-interest rate financing to acquire homes and subsequently empower others to embark on their homeownership journey through owner financing.
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PREDICTABLE RETURNS
When acting as a private lender, you engage in a formal contractual arrangement that leaves no ambiguity regarding the repayment terms, encompassing both the repayment amount and schedule. When meticulously structured with safeguards and a well-matched borrower, this configuration delivers exceptionally consistent returns
EXCELLENT CASH FLOW
In this current interest rate environment, the opportunity emerges to generate returns that significantly outpace the offerings of mainstream banks, all while avoiding the volatility of the stock market. Savvy investors seeking enhanced returns on their existing assets can secure double-digit interest rates, all through a diversified asset class.
DIVERSIFIED INVESTMENT
Putting your hard-earned capital to work is a key driver of wealth growth. However, it’s essential to recognize that the risk and return profiles of investments can differ significantly. Engaging the expertise of a seasoned real estate advisor empowers you to make informed choices that enrich your portfolio and foster strategic diversification.
ASSET-BACKED SECURITY
Given that our loans are collateralized by real estate, lenders enjoy the security of having a physical asset supporting their investment. In the event of a default, lenders can recover their investment through a streamlined foreclosure procedure, acquiring an asset with very low interest rate financing already in place.
WHAT IS PRIVATE LENDING?
When we have isolated a home that we can acquire with minimal entry costs and advantageous financing, we give our private lenders an opportunity to fund the purchase and rehab of the home. Lenders can also earn high interest rates – generally 8 or 10 times the rates you can get on bank CDs and other traditional investment plans.
HOW IS THE MONEY USED?
On a new home purchase with the fixed rate financing. The cost will be allocated to the cash to the seller, real estate agent commissions, acquisition costs, renovations, carrying costs, cost to resell and possibly a small buffer for unexpected expenses.
ARE YOU REALLY HELPING SELLERS?
Absolutely with your cash funding, we can offer something very few buyers can. We are buying within their timeline in as little as 10-14 days. We help our sellers maximize their equity by paying their agent’s commission, closing costs and when appropriate, cash for their equity.
WHY DON’T YOU GET A TRADITIONAL LOAN?
There are many reasons, but the primary reason is: time and negotiation leverage. Many of the homes we are purchasing are in need of a quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Also, our leverage is far greater when we purchase using cash instead of financing. Many traditional home sales fall out of contract because of financing issues; and this allows us to negotiate a much lower purchase price and reduce our risk.
Lending guidelines are also continually changing. Most new requirements include applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
This particular property serves as a compelling illustration of the invaluable role played by real estate agents in expediting our sale process. With their expert guidance and market knowledge, we successfully repaid our lender in full. Today, we enjoy a positive cash flow of over $800 each month, a testament to the strategic decisions we made in partnership with our real estate agents.
WHAT IF THE MARKET GETS WORSE AND VALUES GO DOWN?
This is a great question and valid concern. However, our strategy is not to speculate 3 years down the road. Our goal is to purchase quickly and sell even faster. Most of our projects are complete in 2-3 months. The market doesn’t tend to shift that dramatically in a matter of months – it’s typically a longer process for an area to decline. Remember, we’re buying in strategic areas where inventory is already low and demand is high; this greater minimizes our risk.
WHAT INTEREST RATE DO YOU TYPICALLY PAY YOUR LENDERS?
Most of our lenders are paid from 12-15%. Our rates will fluctuate very little all depending on the purchase price and rehab involved. The lower the purchase price, we can sometimes afford to pay a little higher rate to make sure our lenders make it worth their time.
We finalized the sale of this property before completing the acquisition, and there was a brief one-week gap before we could transfer it to our end buyer. The family who purchased the home are absolutely thrilled and deeply appreciative of the chance to fulfill their dream of home ownership. Even now, we continue to receive heartwarming text messages expressing their gratitude for helping turn their homeownership dreams into reality.
WHAT HAPPENS IF YOU DEFAULT?
In this unlikely scenario, we would simply transfer ownership of the property to you, if possible. If for any reason 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 retrieve your investment, any unpaid interest, any collection costs, all your attorney fees and maybe even more. An attorney could advise you of whether or not it makes sense to foreclose on the property or seek ownership to protect or recoup your investment.
IS THERE A GUARANTEE ON YOUR INVESTMENT?
No. There is no government backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate. If at any time we were to default on the note, you have legal right to take the home (essentially foreclose on us). Many investors laugh about this one and say, “I hope you’re a day behind on payments – I’d gladly take this one off your hands.” You have to remember that we plan for the worst, and our homes have thousands of dollars of equity in them. So in a worse case scenario, often times we just don’t make “as much” profit as we originally hoped for.
HOW LONG WILL MY FUNDS BE HELD?
The majority of our loans are set up on an 3-6 month note, but it depends on the complexity of the project. Some issues might cause delays, but we account for all of those details upfront and will give you estimated time frame for the return on your investment beforehand.
WHAT IF I’M ON A LONGER TERM NOTE AND YOU SELL THE HOME AFTER JUST ONE MONTH?
It’s extremely important to us that we do not waste your time. However, occasionally, situations may occur where we find a buyer immediately. In this scenario, we provide you with two options: we can either move the note to another property, or provide you with a minimum of 3 months interest. Most investors see the strength of our purchase ability at that point, and simply move the note to another property.
WHEN WILL I RECEIVE PAYMENTS?
Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we will pay monthly, just like a typical mortgage.
Legal Disclaimer:
Real Estate investing involves risk. All parties are advised to consult with their attorneys, accountants and financial advisors before entering into any type of investment. There can be no assurance that the investment objectives described herein will be achieved.
Past performance is no guarantee of future performance or that such investment opportunities will become available. The information is intended only for discussion purposes and should not be relied upon in evaluating the merits of investing in any investment or security. Potential investors who express an interest in investing will be provided with detailed information and other documents.