When we desire to borrow money by offering the property as collateral, we give our Private Lender an opportunity to make the loan… and earn high-interest rates that are up to 14 times as much as the rates you can get on bank CDs or other traditional resources.

As professional real estate investors we need to fund new purchases, sometimes do renovations and fix up properties… plus cover the other costs associated with buying and selling houses. For properties we already own and manage, there are times when we want to convert some of our equity into cash -- without selling the property. This cash may be used to fund our house-buying business, pay off other real estate notes that come due, and handle other cash needs.

Banks and other lenders require applications, and approvals and must follow guidelines imposed by the banking industry. Plus, there are limits to the number of loans they can make to any one company or investor. On top of that, the time it takes for their approval process is never certain. We can move much faster without these limitations by using Private Lenders. That allows us to negotiate more profitable deals while offering homeowners a quick and easy sale without a new loan or deal-breaking contingencies.

We offer several great programs and unique opportunities for buyers. This includes an owner financing program, a down payment assistance program, and a sweat equity program. Buyers today are finding it more and more difficult to qualify for loans. These programs help buyers get into a home they want to purchase quickly… allowing them to start building equity for the future and helping them avoid throwing their money away on rent.

We make our money by providing valuable services to sellers, buyers, renters, and Private Lenders. By cutting out the middlemen, we can avoid the costs normally paid out for real estate commissions, mortgage broker fees, loan fees, and property management fees. We also know how to sell homes at a full appraised value and avoid making price concessions. We can get a home occupied fast to avoid holding costs and how fix up and maintain properties for less money than most people pay. We calculate our offers on properties so that buyers and sellers get a great deal. At the same time a minimum profit of $30,000 to $50,000 is earned between the time of purchase and sale. We won’t just buy a property unless it makes sense for everyone involved. The deal has “to work” for all parties.

A lot of sellers today are having trouble finding a buyer. And there are typically a lot of hassles sellers must endure getting their home sold. Using a long-term investing approach, we can offer sellers an attractive price, close or take possession whenever they want… and give them an opportunity to avoid all the hassles of selling a house.

No. We’re prepared to hold properties for 2 to 3 years. That way we’re not as concerned about short-term price fluctuations in home prices as other investors are. Most of our investment plans are determined by the income we expect the property to produce now and in the future.

That depends on the deal at hand, what works for you, and what works for us. It will be much higher than any CD or traditional investment. It also depends on the current market rates.

Most of our private loans are set up on 2-, 3-, or 5-year terms. However, it depends on what the Private Lender wants and needs… and what the deal is. So depending on our plan for the property, we might be able to offer you a shorter term… or we may ask if you’re willing to commit to a longer-term plan. Regardless, you’ll always decide what term works best for you.

Your interest is fixed and locked in for as long as the note is out. However, we may sell or refinance the property before the full term is up. You’ll always earn your note interest until it’s paid in full. But we do have the right to pay off the note early.

Our policy is to pay off (or replace) any Private Lender who requests an early payoff whenever possible. Sometimes a partial early payoff meets the lender’s needs, allowing the rest of their money to continue to earn high rates. We ask you to give us advance notice, preferably 90 days, so we can do whatever we can to meet your request. We would attempt to meet such a request by refinancing the property, selling the property, or most likely, having another one of our Private Lenders take over your position.

We understand you might be liquidating investments or foregoing another investment program to get a high rate of return. Therefore, we agree in writing, you’ll receive a minimum of 6 months of interest. So, if we need to pay you off sooner than expected, we would either move your mortgage to another property by substituting the collateral or pay you off in full including a minimum of 6 months of interest earned.

Most of our Private Lenders prefer letting the interest accrue and getting a big check when the property cashes out. A few Private Lenders prefer payments. These lenders are usually retired and have cash flow needs. The payments will also be set up to fit your needs, monthly, quarterly, or semi-annual.

Our “First Position Private Lenders” would usually need a minimum available to invest of $100,000 for most deals. However, there are some deals that come along now and then where a lower amount could be accepted. Our “Second Position Private Lenders” would usually need a minimum of $25,000.

No. There is no government-backed guarantee on these real estate notes. However, your protection and security is the amount of equity in the property that secures the note. We will not allow our Private Lenders to loan more than 75% of the value of the property securing the note. That way, the Private Lenders always have at least a 25% “Equity Cushion” in the property.

YES! The IRS does establish guidelines that must be followed in order for a Retirement Account (IRA) to invest in real estate notes tax-deferred or tax-free. You’ll need the services of a company approved by the IRS to act as your custodian to invest your retirement funds. We have been very pleased with Quest IRA, Inc. in Texas (jconnervipquestira.com). We’ll be glad to answer questions about Quest IRA, Inc. and can provide brochures and information from Quest IRA, Inc.

It’s our policy not to borrow more than 75% of the value of a property using Private Lender money. That leaves at least a 25% cushion of equity. You will receive full details on the value, status, and condition of the property whenever we present you with an opportunity to lend.

Absolutely! We never buy a property without title insurance. However, if we are refinancing a property there would be no need for a new title policy.

We pay for all closing costs so your entire investment goes to work for you. We will pay for the closing real estate attorney, document prep fees, notary fees, overnight mail fees, bank wire fees, and recording costs. There are no charges or fees whatsoever incurred by you.

A valid hazard insurance policy is always in place to protect against causalities. You will be named as a mortgagee. Insurance distributions would be used to rebuild or repair the property or used to pay you off.

It’s a loan secured by real estate that is positioned behind a senior mortgage or first mortgage.

No. Your funds will fund one real estate note secured by a Deed of Trust on a property with sufficient equity as protection.

In this unlikely event, we would simply transfer ownership of the property to you. You would be owning the property at 75% of its value, therefore making it easy for a quick sale at a profit. Plus, you have all the legal rights of a secured lender.

Your closing package should include: Original Promissory Note, Copy of the Deed of Trust or Mortgage, Copy of Property Insurance Binder naming you as the mortgagee, and a Title Insurance Policy insuring you against any title problems, Appraisal of the property.

It’s our responsibility to protect the property as well as to protect your collateral. Our crew would take care of any repairs and you never have to get involved.

Once we know how much you want to invest at a high rate of return when those funds will be available, and how long of a term you’re willing to go, we will begin looking for a deal for you. When we select one that meets your goals and investment objectives, you will receive all the details on the property.

It’s our policy to work with people we already have an existing relationship with and with folks they refer. In other words, we work with folks “By Referral Only.” You can certainly refer potential lenders to us. We’ll explain the program and learn about their investment objectives and goals. Once we get to know them there is a possibility they can also become one of our Private Lenders.