WHAT IS PRIVATE LENDING?
HOW THE PROCESS WORKS
The process is simple. We find an extremely undervalued property we want to purchase – and once you give us the green light, we borrow the funds from you to purchase and renovate the property. At closing, you receive a mortgage on the home along with other important documents. The next stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the size of the project), we’ll list and sell the property. When it’s time for closing, you’ll receive your principal plus interest payment. It’s just that simple! The goal is to keep turning that money for you and keep you making substantial profits so you keep coming back to us – building a long term mutually beneficial relationship.
Why Private Lending is So Compelling
- Passive income (minimal time involved)
- No tenants, no labor, no rehabs
- Short-term use of lenders money
- Security knowing the money will be liquid again soon
- Secure collateral position in marketable and liquid real estate
- Borrowers do the HARD WORK of finding the collateral
- Borrowers put THEIR MONEY into lender’s collateral
- Borrowers put THEIR TIME and LABOR into lender’s collateral
- The borrower takes the majority of the risk
- Multiple loans can be made at one time
- Easy and simple efforts yielding $$
- Profits can be tax-free
- PROFITABLE INDUSTRY with no cap on future earnings
HOW PRIVATE MONEY HELPS DAC7
Our Benefits of Using Private Money
- We can avoid banks, applications, approvals, etc.
- We can buy at deeper discounts
- Gives us a competitive advantage above the rest
Allows us to buy with cash – Cash is King
Being able to offer a fast closing with private funds motivates sellers to take our offer over the competition and entices them to take a much lower price than they would from a conventional buyer. Also, lending guidelines are continually changing and are requiring applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
On a new home purchase requiring renovations, private lender funds will be allocated to the purchase price, renovations, carrying costs, cost to resell and a small buffer for unexpected expenses.