Are you tired of earning 2% on your CD's? Are you losing money in the stock market?
What if I told you that I can show you a way to earn double digit returns on your money.
We offer high returns backed by a secure investment.
Drop the CD's, leave the unstable stock market, and forget about the IRA's.
Lend money and get a double digit return on your idle cash, IRA or retirement funds.
Seeking private investors or private money lenders to loan money secured by real estate.
We welcome all interested parties but will only accept two to three private lenders at any one time. We want to make this a win-win situation and look for a long term relationship. Don't leave your money in a bank or CD to earn 1 or 2% interest. Inflation alone will eat away any interest. Instead, earn double digit returns by taking that cash, CD, or IRA and put it in an investment secured by real estate. Do you realize that you can take your current IRA account, turn it into a self directed IRA, and invest with us? There is no need to be able to swing a hammer or install wood flooring... leave that to us. We welcome all local as well as nationwide private money lenders. If you are local to us (Chicagoland area), we are more than happy to take you out to lunch or dinner and show you what we do to see if this would be a fit for you. No pressure whatsoever.
You can call me anytime at 630-927-2751
What do we have to offer? We have been investing in real estate for the past 5 years on a nationwide basis. Due to the number of foreclosures and short sale properties on the market, we are now investing locally in the Chicagoland area. We purchase properties that are in need of rehab and the end buyer usually is a first time homebuyer. That means that we invest in condo's, townhomes, and small homes. We buy low, rehab quickly, and sell at a reasonable dollar amount so that we are in and out of the property as quickly as possible. We've developed a team that consists of realtors, contractors, electricians, plumbers, marketing experts, attorneys, title companies, etc... that we use on a regular basis. This allows us to buy at the right price, rehab with quality workmanship, and sell quickly.
As a private money lender, it does not matter if you are local to us or 2500 miles away. All documents will be written to protect you and your investment.
We've worked with several private lenders in the past who have helped to provide either money towards the purchase of a property or for the rehab. So, you ask... why are you looking for additional private lenders at this time? The short answer is because business is booming. It has never been a better time to buy and rehab undervalued real estate. Additionally, because we are only working on one property at a time at the present moment, one or more members of our team has some downtime while the current property is being rehabbed or marketed to sell. We have our team in place, business is going well, and we've been asked to find additional properties to work on. We have no problem finding the additional properties to purchase, however we need additional funding from private lenders in order to expand our business.
I'll try to answer a few questions that might come up:
So what's in it for you and what's in it for me?
As a real estate investor, if I approach a bank with an offer on a property (most of the properties that we look at are either foreclosures or short sales and offers are made directly to the bank) but I need to get a loan, the bank knows that it will take 30-45 days to close on that property. The bank also knows that a certain percentage of potential buyers will never follow through with the purchase. However if I approach the same bank with an offer to purchase with cash (ie cash from a private lender) and tell the bank that I can close in 7-10 days, banks will oftentimes accept a lower offer because I am more likely to close and close fast. We offer our private lenders a return of 10-12% interest on money borrowed. On occasion a private money lender will instead request to receive part of the profit when the property is sold. Depending on the amount borrowed, we are more than happy to work with the private lender to make sure that we all have a win-win situation.
Look at the following scenario. I just found out that a 6 month CD is paying a yield of approximately 1%. Which would you rather have?
|
Put your money in a bank CD |
Our Private Lenders |
|---|---|
|
$50,000 |
$50,000 |
|
1% Yield - 6 months |
10% Yield - 6 months |
|
$50,250 |
$52,500 |
How are you so sure that you will make a profit and that I will profit from your projects?
When my partner and I are looking to purchase a property, we initially look at 3 things. Location - Price - Comps. We add to that what is also called the after repair value of the property and we use a strict formula before putting in an offer. What this means is that we virtually guarantee a profit. Of course I have to say that past returns are not indicative of future earnings. Without giving away too much information, if we determine that a particular townhouse is in a good part of town, it needs $12,000 in rehab work and could sell for $100,000 when rehabbed, we will be looking to purchase this townhouse under $60,000. After all is said and done, we will have one of the best townhomes in that location, we might have $75,000 into the property, and the market value (per comps) would dictate that it would sell for approximately $100,000. There is plenty of equity in the property, even if we had to sell quickly.
Can you give me a property buying scenario? What do I need to work with you?
We just signed a contract to purchase a property for $60,000. It will need about $9,000 in rehab and will sell for approximately $110,000. We anticipate paying either 12% on the amount borrowed or 20% of the total profit on this venture. We are looking to borrow $60,000 at this time. This property should have a turnaround time of approximately 4-5 months.
Update: A private money lender approached us and we worked out a deal where he will receive 20% of the profit. We are about 25 days into this rehab (as of March 28, 2010) and anticipate that we will begin marketing this property in about 7-10 days.
Ok, thats fine. Can you give me an example or some numbers on a property that you recently purchased, rehabbed, and sold?
Sure. Our last property was a 2 bed 2 bath condominium that we purchased for $50,275. A single individual decided to lend money (become a private lender) and gave us $50,000 to purchase the property. We had about $13,250 worth of rehab and holding costs and approximately $6,200 in closing costs. We sold the condo for $98,000 and netted just over $29,000. Our private investor did not want to be paid monthly but instead asked for a percentage of the profit. He walked away with thousands of dollars in his pocket after just over 4 months. He is joining us on our next project.
Of course past results are not indicative of future earnings.
How about before and after pictures?
We are more than happy to supply before and after pictures if you email us. Our concern is that potential buyers and current owners do not want to see a property in its "beat up" condition. When we take our marketing full force to sell a property, we only provide the latest pictures and videos of the property. Yes, our marketing includes "cheesy" hand held videos but it is absolutely amazing at the response that we get from these videos. Here is an example......