If you have a savings account, money market account, stocks, CDs, an IRA, or any other investment capital that is not safely earning you at least a 6-12% return, then you should invest with us.
Preferred Home Solutions buys several houses each month. When we pay cash for a house, we use private lenders instead of using our own funds or bank loans. Since we get a very high return on the cash invested, we can offer our private lenders a high yield when using their money to fund our transactions.
The maximum amount that will be borrowed on a first deed of trust (mortgage) is 65% of the "after repaired" current value of the property. That means, for example, we would only borrow up to $65,000 on a property worth $100,000 when fixed up. In this example, the money borrowed is secured by a 1st note and deed of trust (mortgage). Our investor gets 8.00% interest and we would get the use of the money to buy, rehab, and rent out the property. Monthly payments could include principle and interest, or interest only, depending on your desires. Interest only payments keep 100% of your principal working for you at all times. Most loans have a balloon payment due in 6 months to 7 years. The term is decided by the investor's desires.
Sometimes we borrow offering a 2nd deed of trust (mortgage). For example, on the same $100,000 house, if there is a first mortgage for $50,000 already on the property, then we can offer our investor a second mortgage (up to 85% LTV) of $35,000. In the case of a second position loan, we would pay 10.00%
All private lenders get:
-Deed of Trust (mortgage) recorded against the property
-Added on to the hazard insurance as the mortgagee
-Copy of an appraisal or comparable sales report
-Lender's title insurance
We pay all costs involved to close the transaction. There is no cost to you, the investor.
To invest, we would first find out how much you are looking to put to work and for how long. We would then look for a deal that will meet your criteria. We almost always have a deal available. Once located, we would call you, give you all the details, and then you would decide to participate or not. There's never any obligation until after you approve the deal.
We never co-mingle or pool funds together. One investor... one note and deed of trust (mortgage).
When you decide on a deal, you'll send your funds directly to the closing agent at a local title or escrow company when we're ready to close. We'll never accept your funds directly.
A majority of our private lenders currently include many of our family members, seasoned business contacts, and previous sellers that we've purchased property from. Only recently have We opened this tremendous opportunity to the public and people visiting our website.
If you have funds in a retirement account like an IRA, you can use them to invest in real estate. The majority of people do not know this. The IRS requires the use of an approved custodian to qualify for tax deferred or even tax free gains. I recommend Equity Trust Company (www.trustetc.com) to create a self-directed real estate retirement account. I will be glad to discuss this with you further.