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 go to banks or mortgage lenders? A: Banks and other lenders require applications, approvals and must follow guidelines imposed on the banking industry. Then there are limits to the number of loans they want to make to any one company or investor. On top of that, the time it takes for their approval process is never certain. We can move much faster without these limitations by using private lenders. That allows us to negotiate more profitable deals while offering homeowners a quick and easy sale without new loan or deal breaking contingencies.
Why are the returns so attractive! Q: How can the investor be able to pay double or triple CD rates? A: Investors make profits by providing services to the different parties involved in a real estate transaction, sellers, buyers, renters and private lenders we work with. They cut out the middlemen, and therefore avoid the costs normally associated with real estate commissions, property management fees, mortgage broker fees, loan application fees. Investors are also knowledgeable in how to get full value (appraised value) from buyers without having to make price concessions. They can get a house filled up (sold or rented) fast and avoid large holding costs and they know how to repair and keep properties in good condition for less money then most people pay. They always make purchase offers such so that all parties including buyers and sellers get a great deal. At the same time they realize a minimum profit of $20,000 or $30,000 between the time the house is bought and sold down the road. They just wont buy a home until and unless it makes economic sense for all parties 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 you assist renters? A: Renters in today’s world face tougher and tougher application requirements by landlords and property managers. We as Richard Roop style investors have positioned ourselves to be flexible and creative in getting reliable folks into our houses at reasonable prices, thereby providing a much needed service. Contrary to others we can even lease to people who recently had a foreclosure or a bankruptcy.
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