Private money loans are given to real estate investors and secured by real estate. In this case, our team identifies a potential investment property well under market value and offers private investors an opportunity to fund the purchase and rehab work. In doing so, investors will generate a return on their investment when the property is flipped.

Your loan will be used to fund both the property purchase and any renovation work needed to flip the property for maximum profits.

No. We pay all closing costs, and your entire investment is applied to the property purchase and rehab work.

No. Your capital will be used to secure and rehab one property, and you will be the only investor in that property. This will all be secured and confirmed by a deed of trust.

We could—but we move very quickly, and traditional banks and lender mortgages don’t. Many of the deals we close happen in two weeks or less. But it takes about 30-60 days to finalize a mortgage. Also, by not working with banks and traditional lenders and closing in all cash, we’re able to negotiate better deals, and create greater value for all sides.

We currently pay 4-5 times what a typical bank CD is paying. Our rates will fluctuate very little all depending on the purchase price and rehab involved. Most of our lenders are paid 8%. Sometimes, we’re able to give our investors a little more than 8%. When we purchase properties for very low costs, we often can pay out extra at close—bonus!

You’re protected because YOU hold the deed. If we were to default on the loan, you have the legal right to foreclose on us and take possession of the property, just like a bank would. But we plan for everything, and this isn’t a reality with us. The worst-case scenario is that a deal isn’t as profitable as we’d hoped—but that doesn’t impact your ROI at all.

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 get your investment back, any unpaid interest, any collection costs, all your attorney fees and maybe even more. A legal representative could advise you if it makes sense to foreclose or seek ownership the property to protect or recoup your investment.

We do not Guarantee anything, BUT in most cases, we buy properties for 30%-60% below market value. So, from day one, we’ve already created significant equity. By eliminating real estate agents (and their hefty commissions) as well as broker fees and loans fees, we save even more. It’s easy to turn over that 6-10% every single time when your margins look like this!

It happens from time to time—we’ll find a buyer immediately. In that case, we’ll give you a choice to move your money to another investment property or take three months of interest. Most investors choose the former—but it’s up to you. 

Most of our loans are set as six (6) to twelve (12) month notes—it all depends on the property and the rehab work needed. If, for example, you’re investing in a tear down, it could take a bit longer since these require added layers of inspections and approvals. When we present you opportunities, we’ll share a timeline so you can understand when we anticipate flipping the property and returning your investment—with interest. 

We usually pay investors at closing. If you’re holding a longer note on a rental property, you’ll be paid monthly or quarterly, as if you were a bank holding a mortgage note/deed. 

It’s a great question and one we’ve given a lot of thought to over the years. When we invest in properties, we’re thinking ahead—well ahead. But our properties sell very quickly—usually within three (3) to six (6) months of the initial investment, or about four to eight weeks after the rehab work is complete. These short turns enable us to take advantage of existing market conditions and adjust based on where we are now and where we anticipate being in a few weeks and months. It’s a simple, streamlined, and strategic approach that’s helped us maximize market conditions repeatedly—even when those conditions are ripe by traditional standards. 

We purchase property insurance. Should there be any damage or destruction, insurance payments would be used to repair, rebuild, or pay off your investment.