FREQUENTLY ASKED QUESTIONS:
PROFITABLEPROPERTY PRIVATE INVESTING
Click on each question below to see the answer.
What is the minimum investment you
are willing to accept?
What type of return can I expect?
How long is the loan commitment?
What type of paperwork will I receive?
What happens to the capital
when the property is sold or refinanced?
Where is the property located
in which my funds are secured?
What is my NEXT STEP?
What is the minimum investment
you are willing to accept?
The minimum investment is $150,000. Investment capital below
$250,000 is generally secured in a second position. However,
there are properties that are purchased below $250,000 and
in that case the funds would be in a first mortgage position.
The amount of capital to be invested can be discussed at our
initial meeting.
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What type of return can I
expect?
Historically, we have averaged a return of 10% - 15% depending
on a first or second mortgage position. The funds are secured
by a deed of trust with a loan to value ratio of no more
than 70% of renovated market value.
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How long is the loan commitment?
The term of the loan is for a period of one year with interest
only payments due quarterly. The loan is ballooned in one
year unless the parties mutually agree to an extension
on the loan.
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What type of paperwork will
I receive?
Initially, you will receive a package of information on the
specific property. The package will include a picture of
the property, a property analysis of the deal, renovation
estimates, current comparables of property sold in the immediate
area and a loan request. After the investor has approved
the property, our attorney will prepare the Deed of Trust,
Promissory Note and a Title Binder. The investor will receive
a copy of each of the documents along with a copy of insurance
coverage.
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What happens to the capital
when the property is sold or refinanced?
The funds will be deposited into a third party escrow account
once the property has been sold. At that time the investor
can either request return of the money or roll the money
into another specific property. The funds will earn the agreed
upon interest if the money is earmarked for another project.
If the investor wants to continue working with us, the process
is the same and the investor will receive an information
package on another property.
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Where is the property located
in which my funds are secured?
We are a local company that purchases residential property
in the Washington D.C. metropolitan area. All of our investment
properties will be located within the National Capital region.
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What is my NEXT STEP?
Go to the Free Consultation
page of this website. Fill
out and submit the online form as directed (or fax it to us
at 301-881-5542). We will contact you to arrange an initial
meeting to discuss your investment goals.
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