How The Process Works
- The investor finds & negotiates to purchase a property for a discount, ensuring a large cushion of equity.
- You request the investor to contact you with property details when they find a deal that suits your funding criteria.
- The investor will choose a lender and may ask you to provide a Letter of Commitment (LOC) to fund the project according to the contract closing date.
- The contract & LOC is sent to the closing attorney, title search is ordered, and the attorney will prepare all documents for the closing.
- You will provide certified funds to the closing attorney via cashiers check or wire. There are no documents you need to sign, all documents are signed by the investor (the borrower). The property purchase transaction is complete, the investor now owns the property, and you are the 1st mortgage lien holder. s
- The investor begins rehab on the property immediately with a very experienced crew.
- The investor fixes and puts the property on the market to sell to a new homeowner as quickly as possible at a much higher price.
- The property gets sold, and your entire loan gets paid back in addition to the rate of return of the promisory note.
- If you are satisfied then you simply tell the investor that you would like to be a lender on another property. The process repeats and your money grows with high fixed returns.
- The simplest way to think about it is this: You write a check, the investor goes to work, and shortly thereafter you get back a bigger check. Everyone wins.
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