HOW IT WORKS
When we pay cash for a house, we offer a private lender the opportunity to loan the funds instead of using our own funds or loans from banks. Since we get a high return on our own cash, we can offer our private lenders a higher interest when we use their money to fund new deals. Maximum loan to value is 75%. That means we will borrow maximum $150,000 on a $200,000 property. The money we borrow is secured by a 1st note and deed of trust (mortgage). Our private lender gets a fixed interest based on the loan and term. Monthly payments include principal and interest, or interest only, depending on the needs. Interest only payments keep 100% of principal working. Most loans will typically be for 1 year but can be 1 to 10 year terms dependent upon the needs of the private lender. Sometimes we borrow offering a 2nd deed of trust. For example, on a house worth $200,000, if there is a first mortgage for $100,000, then we can offer our private lender a second mortgage of (up to) $50,000. In the case of a second position, we pay a higher interest rate.
FOR EVERY LOAN, THE PRIVATE LENDER RECEIVES:
Let me illustrate how they enjoy bigger profits using an example of $10,000 invested for 36 months with compounding interest. First, a bank CD paying 2% will grow to $10,612 in 36 months for a gain of $612. Next, a real estate note paying 8% will grow to $12,597 after 36 months for a gain of $2,597. Now that's over 400% more money on the same amount invested! What a difference! In another example, $50,000 in a CD that is earning 2% per year will give you $83.33 per month. But, a real estate note of $50,000 at 8% will give you $333.00 per month. Big difference!
We pay all costs involved to close the transaction.
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At Pro Home Buyers, our mission is to be your straight-forward and professional option for the sale of your property.
We strive to get you the cash you need to move forward with your life.
PRO Home Buyers
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Saturday: 9:00am - 8:00pm
Sunday: 9:00am - 8:00pm
You can call ANYTIME.