What do you do for investors?
We provide access to private buying opportunities for both on and off-market properties that are not available to the public. These are premium investment-grade properties in hand-selected micro-markets that are most favorable for real estate investors.
Is My Money Safe? What kind of security do you offer?
We secure our investors the exact same way a bank does when they lend money. You would get a mortgage (or deed of trust depending on what state you’re in) and a note specifying the terms of the investment. Our lenders lend on much more conservative criteria than banks do though… so we feel our lenders are in a much better position than banks are today.
What type of property do you invest in?
We locate median-priced, single-family homes at a 10% to 20% discount in nice neighborhoods that need little to no work. We will rehab the property if needed.
What does “turn-key” mean?
Turn-key means different things to different people. Our definition is a fully rehabbed property with a signed lease or lease-purchase tenant in place so you cash flow from day one.
Is this a long term investment?
That’s up to you and the tenant-buyer. Most of the deals we do are 1-3 years.
Can you use your IRA or 401k to make these loans?
Yes, you can. In fact, it’s a great use for them and what better way to grow then tax-free. If it’s your IRA it must be self-directed. This is easy to accomplish. It’s only a matter of moving it to an administrator of your choice.
Now don’t worry, this is not a rollover with penalties from the IRS, it’s merely a transfer from one administrator to another. If you’re going to use your IRA to make loans you’ll find this a necessary step because most people have their IRAs housed with a company that will not allow them to make loans or in fact make any kind of investments other than what’s on their list. We call those multiple-choice IRAs not truly self-directed IRAs. With a self-directed IRA, you will be allowed to do what you want with your IRA and not what someone else insists you do that’s on their list.
If you’re using a 401K you must be in control of writing the check. You’ll find it difficult to get your employer to direct your company’s pension plan to private loans. They’re usually managed by stockbrokers with guidelines. They’ll do what they want and you won’t change their mind.
Now of course if you recently left a job that 401K belongs to you. They have to allow you to transfer to a traditional IRA if you so choose. So you might want to check that out and transfer to a self-directed IRA and start making private loans.
What if I need my money back sooner?
You are in control. You could choose to sell to another investor. We would help you with this.
Is this a security or a mortgage deal?
Well, the answer is yes and no. Technically it is a security. Any debt is security. But it’s not a security that you’re going to need a license for or register with the SEC or anything of that nature.
You will own the whole loan with no other participants. You’re in control all the way, which makes this a better investment than all other vehicles I know. Only when loans are pooled does it become a security needing registration.
When we find a house we’ll go over the numbers with you and at that point, you decide if you’re in or out based on the loan amount needed and any other factors you feel are important.
Who handles the paperwork?
All real estate closings should be done by a real estate attorney, a title company or escrow company depending on your state. Your check will be made out directly to the closing agent for the gross amount of the loan.
All expenses will be paid by the borrower and will be deducted from the proceeds at the closing. Just like any loan done anywhere regardless of who the lender is. It then becomes the closing agent’s responsibility to receive your funds and make sure all documents are in place to secure your investments.
You’ll receive your package after the closing it should contain the original note and a copy of the original trust deed which will be recorded and mailed to you by the closing agent. So, you don’t do any paperwork. You simply commit to make the loan and get the money to the closing agent when it’s time.