Debt Partners
- No equity participation.
- Functions very much like a bank and expects a percentage return on their investment.
- Paid at the time of resale or refinancing.
Equity Partners
- Participates in a portion of equity.
- Participates in cash flow.
- Participates in all proceeds from the resale.
Comparing traditional investments tools like mutual funds, bonds, IRAs, CDs, and stocks, real estate offers higher returns on your money invested.
You can invest in RE if you have funds in those mutual funds mentioned above.
- Attorney Prepares / Reviews Paperwork
- Your Loan is Secured! At closing you will receive:
• A Promissory Note
• A Mortgage/Deed of Trust
• Hazard Insurance Policy
• Title Insurance
• An Appraisal
- We currently provide quarterly
payments of simple interest to our
partners. - If you need monthly income, we can
make monthly payments - If you are not looking for monthly cash
flow, you will get one check for the
principal and interest when the property
is sold or refinanced
• Stocks
• Bonds
• Mutual funds
• CDs
• IRA
• 401K
• Self Directed IRA
Example: What would $30,000 invested in real estate at 10% look like?
$30,000x 10% = $750 per quarter or $3,000 per year. Paid directly to you (5 years = $15,000)
$30,000 CD at 4.17% pays $1,251 per year. Compounded (5 years = $6,255). This is a 5 year CD at this rate.
That’s a difference of $8,745 over 5 years !!!
We won’t let you forget that when you invest in real estate, you can get your property back whereas when you invest in stocks, you don’t get that security, stock markets going down, you could lose your money. We don’t want to operate our business at a loss. Our objective is to return your money so that we can profit from it and move on to the next deal.
Your money is secured to the property. Afterwards, you have the option to either hold an auction or foreclosure on the property and seize it.
Every day we hold the property, the cost of holding it increases. Therefore, we must sell this property as soon as possible in order to avoid losing our profits. Make sure the number is conservative by checking out comparable properties that have recently sold. And in order to sell it quickly, we will correctly price that property. We will set the property’s price below market value. We will allow the broker or real estate agent to sell the property. We exercise due diligence, check references, complete our work, and pay attention to details.
Our goal is to sell the property at 30-45 days, sometimes we sell property 4-5 months but we put buffer and analyze it for 6 months.
- Professionals
You are sending all the money and paperwork to our attorney; you are not handing over cash or handing over a check; everything is going through our attorney. - Mortgage
You will receive the initial mortgage, which serves as the financial security for the property. I am unable to market the property until the entire mortgage has been paid off. - Promissory note
You will be able to read it because everything will be in writing and not just discussed verbally. All the papers will be handled by an attorney. - Title Insurance
The title insurance will be provided to you! - Property Insurance
The property will be covered if there is a flood or a fire on the property