FAQ

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 1-2 months and will  be sold in 4-5 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.

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 from 10%. 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.

The majority of our loans are set up on an 6-12 month note, but it depends on the size of the project. If we  are doing a teardown and rebuild, we will have to wait on the county inspectors for approvals . This will cause  delays. But, we account for all of those details upfront and will give you estimated time frame for the return on  your investment.

The majority of our loans are set up on an 6-12 month note, but it depends on the size of the project. If we  are doing a teardown and rebuild, we will have to wait on the county inspectors for approvals . This will cause  delays. But, we account for all of those details upfront and will give you estimated time frame for the return on  your investment.

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.

We will work with you in every way possible to get your money out, what I ask is for you to give me the most time that you can to let me do that. Typically, we can contact our network of private lenders and ask one of them to replace you as the lender.

Typically, in our market our average purchase price is around 200k, if you only have 150k to lend, you would be in first position on the loan but we would have another lender in second position. If you only have 50k, on the other than, you would be in second position or third position. The good thing to know is that all of our lenders are in security position with the built-in cushion.

Not everybody has the opportunity to have this conversation. A lot of people either don’t know about it or don’t understand it enough. I would consider us to be the fortunate ones.

It sounds like you’re interested. You definitely have time to process anymore additional questions. There’s not one deal right now that I need to finance today. I want to build a long term relationship with you. Within a weeks time, I would ask for you to check back in with me. Also just always try to keep me in the conversation if other people have questions as well.

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 normallywould 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.

If something happens to me where I can no longer finish the project, you can foreclose on the property. If I am ill or injured we can work together and possibly sell off the property together, as is. Your loan will always be less than the house is worth so you will get 100 percent of your principal back.

The main thing I want to point out is that our buying criteria and our systems allow us a $20,000-$30,000 cushion. Because of our profit margins, I would have be off 30 percent of a sales price to make no money. In any case, we always pay our investors first with any and all proceeds. So if we sell if for less than we think it will affect us, not the lender.

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.

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.

It is our policy to pay for all the closing costs so that your entire investment goes to work for you. We will pay for the closing agent, document preparation fees, notary fees, overnight mail fees, bank wire fees and recording costs. We do not charge any fees or commissions to our private lenders.