Our company has developed into a great cash flow resource for many investors. The great thing about our system is that we never use banks. Banks today do not service investors, they have decided that owner occupied is about all their going to lend on.
We work with investors to convert their IRA's into cash machines by buying investment real estate.
Today I want to talk about private financing and how it can be done safely. Our company is offering a program that lets the investor borrow the purchase money from a private lender. The investor pays for the rehab and we get the home Land Contracted for the investor.
The purchase,rehab and management is also done by our licensed people. The LTV on this (Loan to value) is 20%-30% of the value and in a 1st lien position. The lenders rate of return is high 15%! The great news is the Investor still makes approx $350 per month net cash flow. That is a great investor and lender partnership.
You can do this type of lending through your IRA. There is another saftey net that really secures both the lender and the investor. The land contracts cash out about 50%-60% of the time. The ones that don't cash out usually stay in the home multiple years.
For those homes that may be a blessing in disguise. We never know the future but when the market turns and it will then the lender and investor will still be setting nice!
Brett Young www.RooftopCleveland.com
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