Are you currently getting the safety, security and return on your investment money that you want? By investing in our current rehab and subject to properties, you can avoid the typical hassles of dealing with contractors, repairs, evictions, tenants, banks, depreciation, loss in retirement account value or a myriad of other potential problems that are prevalent in traditional investments.
It is hard to argue that fact that more and more investors are turning to real estate as a secure and profitable investment. And there are countless ways to profit from real estate investing, however, most require that you buy and hold or “flip” the property. These options require that you tie up funds for extended terms, have to deal with market fluctuations, deal with competitors and market your property.
How to invest with Modessent Homes without having ownership of property?
Become a hard money lender.
Hard money lenders are lending companies or individuals offering a specialized type of real estate backed loan. Hard money lenders provide short-term loans that provide funding based on the value of the real estate that has been used for collateral for the loan. Hard money lenders typically have much higher interest rates than banks because they fund deals that do not conform to bank standards.
Why is hard money lending safe and secure?
Hard money loans are secured by a property with 30% to 50% equity, so the lender is well protected.
Hard money lenders can choose who they want to lend to, the amount they want to lend and the terms they are comfortable with. There are no specific underwriting guidelines that they must follow like traditional banks.
Hard money lenders have control of the paper and none of the ownership risk or the headaches.
Ways to make a profit on every deal:
1. The borrower pays interest on the loan for the duration you both agree upon. The borrower pays off the full loan amount at the end of the term with interest.
2. The borrower defaults. You foreclose on the property and sell it for a profit.
3. The borrower defaults on the loan. You foreclose on the property and lease option it for a return and appreciation potential.
Loan paid off in full Loan Scenario:
Ogden, Utah home
Property Value $133,000
Loan To Value: 70%
Loan Amount: $94,000
Days Loan Was Out: 125
Annual Return To Investor: 16.29%
Lending on real property with all the control, but without the hassles is quite possible the most favorable way to invest in real estate. Whether you are a seasoned real estate investor or hard money lender, we provide great returns on your money and seamless real estate investment. Please contact us today at 801-628-3850 if you would like to learn more about lending or investing with Modessent Homes.