Cash security for my silent Private Money Partners is paramount so each get:
� Promissory Note
� Deed of trust (Mortgage) recorded against the property
� Added on to the hazard insurance as the mortgagee
� Copy of an appraisal or market analysis report
� Lender’s title insurance
We pay all costs involved to close the transaction. There is no cost to the Money Partners.
To provide the funding for one of our deals, we would first find out how much a potential partner is looking to tie up and for how long. We would then look for a deal that will met their criteria. Once located, I would call the Money Partner to go over all the details and then he or she would decide to participate or not. There’s never any obligation until after the Money Partner approve the deal.
We never co-mingle or pool funds together. One Money Partner… one note and deed of trust (mortgage).
When a Money Partner decides on a deal, he or she will send funds directly to the real estate closing attorney’s escrow account before the closing. We’ll never accept funds from a Money Partner directly.
For some Money Partners we can offer selling existing notes secured by real estate at a discount to yield 7-10%. These types of deals are less common but opportunities to buy discounted notes occur now and then. Discounted notes would require further explanation regarding risks.
All houses used as collateral will be local to each respective Money Partner.
A majority of my Private Money Partners currently include a few of my family members, seasoned business contacts, college classmates, people I’ve worked with in the corporate world and previous sellers I bought property from.
If a potential Money Partner has funds in a retirement account, they can use it to fund our deals also. The IRS requires the use of an approved custodian to qualify for tax deferred or tax free gains. I recommend www.trustetc.com to create a Self-directed real estate retirement account. I educate all potential Partners on this little known startegy.
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position and reap the benefits that my current Money Partners are experiencing .[spacer height=”20px”]
************************* If you are reading my blog for the first time, let me inform you that: I am a guy that buys single-family houses and I write this blog weekly which is primarily directed to educate 1 group of individuals:
Individuals who are losing their shirt as a result of the “roller coaster” volatility of the stock market and low paying rate of other traditional investments…People that are looking for an opportunity that’ll provide a secured place to put their money to get it working for them to earn better than average returns.
However, often times, homeowners that need to sell their house, stop by to take a peek because they are curious and wondering how and/or where I get the funding to purchase houses. And if they stick around long enough, they begin to understand why individuals partner with me to provide the funding which empowers me to be able to purchase real estate on a continual basis.
Request your FREE Education Kit if you are interested in learning how passively investing in real estate may help place you in a better financial position.[spacer height=”20px”]
Disclaimer: This site is intended for educational purposes only. I am not an accountant, attorney or licensed financial planner. While the information I’m writing here is based on many years of experience buying houses that doesn’t really constitute professional advice (since everyone’s experiences and situations are different).