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 GOOD! Q: How can you afford to pay double or triple CD rates? A: Investors make money by providing valuable services to the sellers, buyers, renters and private lenders we work with. By cutting out the middlemen, we can avoid the costs normally paid out for real estate commissions, mortgage broker fees, loan fees and property management fees. We also know how to get full appraised value from our buyers and avoid making price concessions. We can occupy house fast to avoid holding costs and we know how to fix up and maintain properties for less money then most people must pay. We always formulate our purchase offers so that our buyers and sellers get a great deal. At the same time we establish a minimum profit of $20,000 or $30,000 earned or captured between the time we purchase an investment property and sell it down the road. We just won’t buy a property unless it makes sense for everyone involved.
Help for sellers and buyers Q: How do you help sellers? A: A lot of sellers today are having trouble finding a buyer when they decide to sell. And there are typically a lot of hassles a seller must endure to get their home sold. Using a long-term investing approach, we can offer sellers an attractive price, close or take possession whenever they want and give them an opportunity to avoid all the hassles of selling a house.
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.
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