What does the Investor Do with the money? Q: If an investor gets a private money loan, how does he use it and is it safe? A: Like in any business professional Real estate investors have a need to finance new real estate purchases, get money to repair, maintain and lease up their properties. It also can be used to cover other costs associated with purchasing or selling homes. For properties which the investor already owns and manages, there are occasions when an investor may have the need to change equity into liquidity – cash without having to sell the property. This cash can be used to buy another house, fund operations pay off other real estate loans that come due or deal with 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 does the investor help sellers? A: Many sellers today are not successful finding a buyer when they want to sell. Plus they have to go through a lot of inconveniences to get their home sold. Using a more long-term approach to the investment, Free and Clear investors like Richard Roop can offer sellers an appealing price, close on the transaction whenever the sellers want and help the seller avoiding all the hassles of selling a home.
Q: How do you help the people we sell to – the buyers? A: We offer several great programs and unique opportunities for buyers. This includes a Sweat Equity Program, owner financing program (where we sell with owner financing), a down payment assistance option amongst other possibilities. Buyers in the current market are finding it increasingly difficult to qualify for bank loans. Our creative Programs help buyers get into a house they want to buy quickly, and without hassles allowing them build equity for the future faster and not throw their money away on rent payments
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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