| How to Get Private Real Estate Funding The Way Richard Roop Does |
| Articles - Mortgage |
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How are the funds used by the investor? Q: If I loan money to a real estate investor, how does he use it and is it secure? A: Serious real estate investors need funds to buy new purchases, raise cash to fix up, keep up and rent their properties. Plus, cash raised from private lenders may cover other costs associated with the housing business. For properties the investor already owns and manages, there are sometimes occasions when an investor needs to convert equity into cash, without getting rid of the property. He might need these liquid funds to fund his house buying business, pay off a loan on another piece of real estate or handle unexpected cash needs.
How are the funds used by the investor? Q: If I loan money to a real estate investor, how does he use it and is it secure? A: Serious real estate investors need funds to buy new purchases, raise cash to fix up, keep up and rent their properties. Plus, cash raised from private lenders may cover other costs associated with the housing business. For properties the investor already owns and manages, there are sometimes occasions when an investor needs to convert equity into cash, without getting rid of the property. He might need these liquid funds to fund his house buying business, pay off a loan on another piece of real estate or handle unexpected cash needs. Why private money? Q: Why dont Investors go and talk to banks or official lending sources? A: The Reason is simple: Banks and other Institutional lenders require formal approvals, applications and must follow ever stricter guidelines imposed on the banking industry. Then there have internal limits to the amount of money an the number of loans they are willing to make to one investor. On top of that, there is the time issue. You never know how long it takes them to approve a loan. Investors using the Free and Clear Approach like for example Richard Roop can move much faster without these hurdles by using non-bank loans from private individuals. That allows the investor to negotiate more profitable transactions while being able to offer homeowners a fast and painless sale without new deal breaking lending contingencies. Why are the returns so high! Q: How can you afford to pay double or triple bank rates? A: Investors make their profits by providing good and needed services to all parties we work with, buyers, sellers, tenants, and private lenders. We can cut out the costs normally paid out for real estate commissions, mortgage broker fees, loan initiation fees and property management fees by cutting all these parties out from the transaction. Being Trained by experts like Richard Roop, We know how to get full appraised value from the buyers and avoid having to lower prices to sell the property. We can have the house occupied fast which avoids holding costs and we know how to fix them up and maintain properties for less then most people think it is possible to do it for. We always make our offers such that all parties get a great deal, Seller, buyer and us. And for us we structure the deal such that we secure a minimum profit of $20,000 or $30,000 between the time we buy an investment home and when we sell within a few years. Unless it makes sense for everyone involved we just won't buy a property. Help for sellers and buyers Q: How does the investor help sellers? A: Many sellers today are not successful finding a buyer when they want to sell. Plus they have to go through a lot of inconveniences to get their home sold. Using a more long-term approach to the investment, Free and Clear investors like Richard Roop can offer sellers an appealing price, close on the transaction whenever the sellers want and help the seller avoiding all the hassles of selling a home. Q: How do investors like Richard Roop help buyers? A: Investors in High Equity Properties like Richard Roop, offer several programs and opportunities for buyers. This includes offering seller (owner) financing, a down payment assistance program and a program where the buyer can build up sweat equity over time. Buyers today have more and more problems qualify for loans than ever. The Investors programs help buyers get into the house they want quickly allowing them to start building wealth for the future and helping them avoid wasting their money on rent. Q: How do Investors assist renters? A: Renting is always a waste of money because a tenant does not build up equity. Plus tenants today face more scrutiny and application requirements from the landlords and property management companies. Investors subscribed to Richard Roops method have positioned themselves to be flexible and highly creative in getting solid people into the homes, thereby providing a much needed service. We can even rent to folks who recently had a bankruptcy or foreclosure. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Find out more about Richard Roop and his brand new Free and Clear House system at www.FreeAndClearCashFlowMachine.com |