| Richard Roop's Private Real Estate Funding Secrets |
| 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 don't you borrow from banks? A: The problem Banks and other lenders present is that they require detailed applications, bureaucratic approval processes and they must follow guidelines imposed on the banking industry. Then there are self imposed (and FHA imposed) limits to the number of loans they are willing to make to any one company or investor at the same time (currently 10 per investor). On top of that, the duration of their approval process is never certain and can take weeks or months. As Investors following the High Equity Deal Program generated by Richard Roop for example, we can move much quicker without these limitations by using private funding sources like private lenders. That allows us as investors to negotiate deals faster and more profitable while offering sellers a fast and easy sale without the red tape from banks . 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 buyers and Sellers Q: How do you help Owners/seller? A: A lot of sellers today are facing problems finding a buyer when they decide to sell their house. And there are typically a lot of inconveniences and problems a seller must face and get through in order to get their home sold. Using a long-term investing vision, like it is promoted by Richard Roop, we can offer these frustrated and motivated sellers an attractive selling price, we can close the transaction or take possession of the home whenever the sellers want us to and give them an opportunity to avoid all the issues of selling a home. Q: How do you help buyers? A: We offer several great programs and unique opportunities for buyers. This includes our owner financing program, our down payment assistance program and our sweat equity program. Buyers today are finding it more and more difficult to qualify for loans. Our programs help buyers get into a home they want to purchase quickly allow them to start building equity for the future and help them avoid throwing their money away on rent. Q: How do you help renters? A: Tenants today face more restrictive rules and application requirements laid down by landlords and property management companies. We have positioned ourselves to be very flexible and creative in getting nice folks into our 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 |