Renovatus Homebuyers buys several houses each quarter and sometimes when we buy we use all cash. When we pay cash for a house, we use private lenders like yourself instead of using our own funds or bank loans. Since we get a very high return on our own cash, we can offer our private lenders a high yield when using their money to fund our deals.
Maximum loan to value is 80%. That means we will borrow up to $80,000 on a $100,000 property. The money we borrow is secured by a 1st note and deed of trust (mortgage). Our investor gets 9.00% interest. Monthly payments include principal and interest, or interest only, depending on your desires.
Interest only payments keep 100% of your principal working for you. Most loans have a balloon payment due in 1 to 7 years. The term is decided by the investor’s desires.
Sometimes we borrow offering a 2nd deed of trust. For example, if there is a first mortgage for $50,000, then we can offer our investor a second mortgage of (up to) $30,000. In the case of a second position, we pay 11.00%.
All private lenders get:
Promissory Note
Deed of trust recorded against the property
Added on to the hazard insurance as the mortgagee
Copy of an appraisal or market analysis report
Lender’s title insurance
We pay all costs involved to close the transaction. There is no cost to the investor.
To invest, we would first find out how much you are looking to tie up and for how long. We would then look for a deal that will met your criteria. Once a possible deal is located, I would call you, give you all the details and then you would decide to participate or not. There's never any obligation until after you approve the deal.
We never co-mingle or pool funds together. One investor... one note and deed of trust.
When you decide on a deal, you’ll send your funds directly to the closing agent at a local title company when we’re ready to close. We'll never accept your funds directly.
All the houses used as collateral will be located near Crossville in Cumberland county, TN.
There are only a limited number of properties in which to invest, but we may have one that is the right fit for you and your investing goals. We have been purchasing houses for years using bank financing. Only recently have I opened this opportunity to others visiting our website.
If you have funds in a retirement account, you can use them to invest. The IRS requires the use of an approved custodian to qualify for tax deferred or tax free gains. There are many custodians available online who can easily transfer your existing IRA over to a self-directed real estate retirement account. I will be glad to discuss this with you futher.
To learn more, or to be added to our private investor list, please give me a call. Your questions are always welcome.
Investors