As you know we buy houses on a consistent basis and have been since 1999.
When we pay cash for a house, we use a silent Private Money Partner instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our Money Partners a high yield when using their money to fund our deals.
Maximum loan to value is 80%. That means a Money Partner will fund up to $80,000 on a $100,000 property. Their money is secured by a 1st note and deed of trust (mortgage). Presently our Money Partners get 7.00% – 12.00% interest. Some of our Money Partners wish to receive interest only payments while some want their interest to accrue.
Interest only payments keep 100% of your principal working for you. Most transactions have a balloon payment due in 1 to 7 years. The term is decided by the Money Partner’s desires.
Sometimes we give a Money Partner a 2nd deed of trust (mortage). For example, if there is a first mortgage for $50,000, then we can offer our Money Partner a second mortgage of (up to) $30,000. In the case of a second position, of course we pay a higher interest rate.
************************* If you are reading our blog for the first time, let me inform you that: we buy single-family houses and 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. We are not accountants, attorneys or licensed financial planners. While the information we’re 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).