Private Lenders ::: We Buy Houses from "Sell My House Fast" Situations
Where Do We Get The Funds to Buy Houses?
We are professional buyers of homes throughout the
Portland-Vancouver Metro Area. My
company can offer a homeowner a fast, all cash sale when the price
meets our buying criteria. Then we borrow the funds needed for the deal
from private lenders... always leaving with a safety cushion of
equity. Our private lenders get a great interest rate on a note from
us, secured by a recorded Deed of Trust against the property. The property is also
insured with a $2,000,000 hazard insurance protection policy.
We offer private lenders to choose whether they want monthly income or have interest
compound for a few years for compounding growth. The terms can range from 6
months to 10 years depending on the private lender's needs.
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How we operate...
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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.
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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!
For every loan, the private lenders receive:
- A Promissory Note
- A Deed of Trust recorded against the property
- Added on to the hazard insurance of $2,000,000 as the mortgagee
- A copy of any appraisals or market analysis reports
- Lender's title insurance
We pay all costs involved to close the transaction.
We never pool funds or co-mingle together. One private lender... one note and one deed of trust.
Funds in a retirement account (IRA), can be used to
invest. The IRS requires the use of an approved 3rd party custodian to
qualify for tax-deferred or tax-free gains.
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Fill out the form below to receive more information about becomming a private lender.
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IMPORTANT NOTE: Any information you provide is
strictly confidential and will not be given, shared,
or sold to any individual, business, or entity
without your prior consent.
Read our Privacy Policy for more information.
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*** Disclaimer ***
This is neither an offer to sell securities nor an invitation for offers to purchase securities.
Securities may only be sold under exemption from or registration under appropriate securities laws.
No FDIC-insured products are being offered for sale. Any securities that Home Option Solutions, llc may offer
will only be offered for sale under a securities exemption or registration, and only one investor
or private lender would be investing in a single property at a time, meaning that my company
doesn't pool money or plan to pool money between two or more investors or private lenders.
Home Option Solutions, llc offers funding opportunities
for individual investors on wholly owned first trust deeds secured against real property.
Home Option Solutions, llc never takes possession or control of loaned funds and investor funds are never co-mingled.
Please consult your own professional advisor(s) when considering or making any investment or private money loan.
We are not financial planners, but a full-time buyer of single family investment
properties throughout the Multnomah, Clackamas, and Washington counties.
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e-mail: david_private @ houseoption.com
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