Frequently Asked Questions

Once we have a house under contract, but prior to when we close on the purchase, we present our private money lenders (PML’s) with an opportunity to invest. This means our PML’s will fund the purchase price, the renovation costs (or both) and/or all of our holding costs. Our PML’s also have an opportunity to earn double digit returns, unlike the returns we typically see in the bank, stock market or retirement accounts, with a protected, secured and insured asset.

We provide a promissory note summarizing the terms and conditions of your loan, We will obtain a homeowners insurance policy listing you as a beneficiary and as I mentioned earlier, We also record a mortgage against the property with your name listed so that  we can’t sell the house without your written consent.

Truth is, no one knows how far the market will go up and likewise how far it will go down. What does matter is what we do when the market is doing what it's doing. Since we know currently the market is cooling, we adjust our buying criteria to fit the current market conditions.

Banks have a very time consuming and cumbersome process. We can’t close quickly if we work with a bank. Most of the homes we buy require a quick close in order for our offer to be competitive.  We also love helping people build wealth and would much rather pay interest to an individual than the big banks.

No. Your funds will be attached to one property secured by a mortgage and you’ll have your own separate set of loan docs. On occasion, depending on the size of the deal, we may have multiple lenders on one deal but each lender will have their own separate set of loan documents and each lender will be assigned a separate lien position.

North Carolina is an attorney transaction state, so funds will be wired to the attorney that is processing the transaction.  They will be responsible for releasing the funds to us once all of the documents are recorded with the court.

All of our contracts are set up with a 12 month holding period, however our goal is to pay you back as soon as possible.We'll always let you know when we anticipate completion.  .

When we're reviewing financials for a project, we always account for market shifts, additional work that we weren't anticipating and/or holding time of the property, all in an effort to ensure we have enough of a cushion for circumstance.

Our team will provide you with a 1099 form for you to share with your CPA or tax consultant. The statement will show how much interest you have earned for the year, it will be categorized as “Interest Income” and you’ll need to pay tax on it unless you are getting paid on money you loaned from your “Self-Directed Retirement” account.

You're the mortgage holder and have a piece of “Real Property” as collateral for this loan, just like Wells Fargo.  If we don't pay you as agreed, then you have the right to foreclose on the property and do with it as you wish, just as if you were Wells Fargo.  You have the same protection and rights as a mortgage holder.

Nothing is ever guaranteed in real estate, however we buy our properties at a deep discount, which means we purchase with equity already built in.  When we analyze projects, we account for more than just surface rehabilitation, with our knowledge and experience we're able to anticipate the *potential* unforeseen needs of the rehab that may not be visible on the surface of the property.  We also make sure that each project has multiple exit strategies to ensure that no matter what the situation, we can fulfil our agreement with our lenders.  As an absolute worst-case scenario, we would take equity out of our own portfolio to satisfy our loan agreement.

The entire process, from first close to second close is processed through a law firm, and all documents are filed/recorded with the court.  We encourage you to do your due diligence and verify our attorneys active license with the State Bar if you have any concern.