Attention Private Investors…
Do you have cash to invest and are looking for a safe and secure way to earn a double-digit return on your money?
We work with dozens of private investors and have raised millions of short-term private money to fund our fix and flip business
Complete Our Buyer Questionnaire – Get on our Preferred Buyer List
Here is our complete program outline:
-Purchase distressed properties at a discount for cash
-Fully renovate the properties
-Sell them to local retail home buyers for a huge profit
-Burlington, Camden and Mercer Counties – Southern New Jersey
Home Buyers willing to pay a premium for a modern, furnished, updated, fully renovated homes.
Target Sales Price:
$150,000 – $300,000 After-Repair Sales Price
Target Profit Margin:
$25,000 – $75,000 Net Profit (after all costs or money, closing costs, etc.)
Target Turn-Around Time (per Property):
120-150 days start to finish
Return on Investment to Private Investor:
8%-10% interest only payments
Example: $200,000 invested at 8% interest produces $8,000 return on investment in six months
Step-by Step Outline to do a Deal:
Once we secure a property under contract to purchase, we present the private investor with the following:
Breakdown of numbers (purchase price, renovation cost, expected sales price, expected turn-around time)
Comparable sold comps to justify expected sales price
As-is before pics
Estimated closing date
Once the private investor agrees to go in on the deal, the following paperwork is drafted prior to the closing on the purchase:
Agreement to change
Once reviewed by both parties and satisfactory, we sign and notarize all documents and originals are sent to the private investor
At time of closing, private investor is given:
Copy of closing statement
Insurance certificate (added as additionally insured).
Private investor wires funds directly to Title Company on the day of closing. Title Company is given a copy of the executed mortgage and records it (1st lien position) with county. Once recorded, county sends recorded copy to private investor.
Immediately upon closing of purchase, renovations are started. Once at least $10,000 of renovation work is completed and paid for by us, a draw request is submitted to private investor: Draw requests include:
Breakdown of money spent
Pictures of completed work
Amount of draw requested
Private investor overnights draw check to us.
Each month we mail interest only payments to private investor based on pro-rated balance (purchase amount plus draws).
Once renovations are complete, buyer is secured, and a closing date set, private investor provides a payoff letter to the title company with the principal amount of loan and any outstanding pro-rated interest. The Title Company send proceeds directly to private investor.
Commonly Asked Questions and Answers:
How much is the mortgage amount?
The mortgage is for the total capital amount (purchase plus rehab). Even though the rehab is given in draws, we allow the private investor to lien the entire capital amount up front. However, interest is only paid on the outstanding balance each month.
How is my money secured?
The mortgage is in the full capital amount invested and is recorded with the county. This puts a first lien position on the property, which must be paid off when the property is sold. This means the private investor has collateral for the capital loaned. In addition, we are so confident in our model to fix and flip properties that we provide our private investors with a personal guarantee as additional security on each deal.
How do I make sure I have a strong equity position on my loan?
We only buy property that is at 65% of after repair value (ARV) less repairs. In other words, if a property has an ARV of $200,000 and needs $40,000 in work, we will buy it for $90,000. Once repairs are made, we will be into the property for 65% of ARV. This allows us to make a high profit on the deal and gives our private investors a strong equity position. We provide to the private investor a list of comps on each deal that justify the ARV.
How much time do I have to fund a deal?
Typically, when we get a deal under contract to purchase, the closing is scheduled 2-4 weeks later. The private investor must have funds available by closing.
Do you provide references?
We provide references upon request to serious private investors only
If you are serious about earning a safe, secure, double-digit return on your money, call us at 856-437-0275 and we’ll send you our company Prospectus