You work hard for your money. There are plenty of ways to make it work for you. One of the wisest investments is in real estate. But the process can be confusing and complicated for some people. Results Home Buyers takes the guesswork out of the process and shows you how to get a big return on your investment.
As the private lender, you fund the deal. A home is purchased and renovated. Then the home is sold. You, the lender, receive principal and interest and hopefully repeat the process.
Here’s a more detailed explanation of how private lending works. Our team at Results Home Buyers finds the property to purchase. Typically speaking it’s extremely undervalued. Once you’ve given the approval, we buy the house and do the renovations. When the deal is closed, you receive a mortgage on the home. Our goal is to make money and build a long-term mutually beneficial relationship.
Benefits of becoming a private lender include:
- High return on investment
- Predictable source of income
- No daily work on your part
Imagine if you had $100,000 to invest. Leaving that money in the bank with one percent interest will result in $1,000 in profit over the course of 12 months. That same hundred grand with seven percent interest would grow to a $7,000 return on investment.
This type of investment is safer than the stock market too. Real estate private lending is secured by the deed of trust or mortgage deed. Collateral is insured, unlike money invested in the stock market. The return on the investment is unknown with stocks too, while returns are fixed with private lending. There’s also a tangible asset involved in the process.
Results Home Buyers can use your loan to get in and purchase a home within two weeks, unlike a traditional bank which can take a month or longer. That helps us negotiate a lower purchase price and reduce our risk. We can also make two to three more deals in that time period it takes for a bank loan to be approved and processed.
This is just the tip of the iceberg when it comes to private lending. We will have future posts about the process. In the meantime, give us a call at (618) 988-0659 or email us.
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