When the bank is knocking on your door, we want you knocking on ours!

FAQ's

Who handles the loan servicing?
The property supplier will handle the loan servicing for 10% of the payment which covers packaging the loan, billing, reporting, and processing monthly mortgage payments.

How are these properties only $25,900?
Our supplier is able to buy properties in bulk and focus on areas that have a low cost of living. These two factors allow you to purchase properties for pennies on the dollar.

How can I purchase properties?
You can purchase properties with cash, or a self directed 401k/IRA.

Can I pick which property I purchase?
In order to offer properties with these deep discounts when properties finish the rehab process they are assigned to the next investor inline. This also makes the process a fair and level playing field.

What if the property is not saleable?
The properties have to make it through a rigorous filtering process and inspection in order to be assigned to an investor. In the case a property is non saleable our supplier will quickly remedy the problem or assign another property to the investor?

Why would anyone buy a $25,900 property?
Many people from middle and high class neighborhoods (especially in California, Hawaii, Arizona, Florida, etc.) cannot even imagine what a $25,900 house looks like. Their first assumption is that it must be a "dump" in a horrible neighborhood. The reality is that in many locations throughout the Midwest that did not see the huge appreciation that occurred in much of the east and west coast, there are many of these properties available in good working class neighborhoods (these ARE NOT ghettos). There properties have simply been neglected for years, had numerous foreclosures in the neighborhood, and have been on the market for a long time. Most of these are 2-3 bedroom, 1 – 2 bath houses with 2 car garages. Some have hardwood floors and they were built in the 1930s-1960s. These are excellent cash flow properties!

What if the end term purchaser trashes the property
This is certainly a risk in any real estate investment and a common assumption for beginner investors. In our experience of being involved in thousands of real estate investment properties all across the US, this happens less than 5% of the time. When it does occur, it is typically by Tenants and not Owners. Additionally the new buyer will have Hazard Insurance with you, the lender, as an additional insured.

What if my Buyer stops making their monthly mortgage payment?
This is certainly a risk in any real estate investment. Our Loan Servicing Company provides a service which currently costs around $500 to remove the Owner. Our contracts allow for us to do this is an expedited manner (typically 45 days or less). If this occurs, we will work with you to find a new Owner.

How do you choose the appropriate exit strategy?
As an investor, you must have multiple exit strategies in mind and always be willing to adjust. This is the key to being a successful real estate investor. Some of the more common exit strategies are:

1. Hold the property for the long term and collect the positive cash flow.
2. Work with your Tenant Buyer to help them get refinanced to cash you out.
3. Sell the Note on your property in the secondary market.
4. If a Tenant Buyer moves out, fix the property up so it can be sold on the retail market.

Do I have to use your management company?
Although we recommend using our management company, this is your property and you are free to chose any management company and or strategy that you would like. We are however available to assist in any way possible.

Can I just do a typical renter instead of seller financing?
We recommend the Seller financing strategy however this is your property and you are free to go in any direction that you chose. If you decide to rent to a typical renter, you may need to do some minor cosmetic upgrades such as paint, new carpet, etc. We typically do not do these types of upgrades for Buyers because they usually put in their own "sweat equity."

How long will it take to get a buyer using seller financing?
On average this process typically takes 30 to 90 days. We are focused in purchasing properties in areas with a high demand for rentals to try and minimize this time frame. However, real estate investments have risk and the timeframe it takes to get a Owner in the property may vary.