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What is private lending?
Q: What does it mean to become a private lender for a real estate investor?
A: When a real estate investor has a need to borrow money against the equity in a property, either to secure a purchase or tie up a deal, private lenders have an opportunity to make a loan, and in the process earn high interest rates that are double or triple the rates you can get on bank CDs.
How is the money used by the investor?
Q: If I loan money to an investor, how is it used and is it secure?
A: Professional real estate investors need to fund new purchases, raise money to fix up, maintain and rent up acquired properties. In addition, it may cover the other costs associated with buying and selling houses.
For properties already owned and managed by the investor, there are times when an investor needs to convert equity into cash. — without selling the property. This cash may be used to fund a house buying business, pay off other real estate notes that come due and handle unexpected cash needs.
Why private money?
Q: Why don’t you go to banks or mortgage lenders?
A: 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.
Why are the returns so GOOD!
Q: How can you afford to pay double or triple CD rates?
A: Investors make 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 then most people must pay.
We always formulate our purchase offers so that our buyers and sellers get a great deal. At the same time we establish a minimum profit of $20,000 or $30,000 earned or captured between the time we purchase an investment property and sell it down the road. We just won’t buy a property unless it makes sense for everyone involved.
Help for sellers and buyers
Q: How do you help sellers?
A: 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.
Q: How do you help buyers?
A: 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.
Q: How do you help renters?
A: 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.
Visit us at www.Freeandclearcashflowmachine.com to learn more about Richard Roop’s successful investing techniques!!!
July 16th, 2009 at 4:54 pm
this is really works!