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How To Get The Money
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 borrow from banks? A: The problem Banks and other lenders present is that they require detailed applications, bureaucratic approval processes and they must follow guidelines imposed on the banking industry. Then there are self imposed (and FHA imposed) limits to the number of loans they are willing to make to any one company or investor at the same time (currently 10 per investor). On top of that, the duration of their approval process is never certain and can take weeks or months. As Investors following the High Equity Deal Program generated by Richard Roop for example, we can move much quicker without these limitations by using private funding sources like private lenders. That allows us as investors to negotiate deals faster and more profitable while offering sellers a fast and easy sale without the red tape from banks .
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 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 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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