Lenders
Follow an example San Antonio property's transformation, powered by private lending, from acquisition to sale.
Greetings, my friend!
Let me tell you about an opportunity that's as exciting as it is profitable, right in the heart of San Antonio, Texas. Picture this: A single-family home sits in an up-and-coming neighborhood, just brimming with potential. It's listed at $150,000, but with a little love and a dash of paint, we're talking a stunning after repair value (ARV) of $220,000. Can you see the dollar signs already?
The current owner has dreams of their own, with a suitcase halfway packed and one foot out the door, leaving them with a $100,000 mortgage that still needs taking care of. That's where we come in with a sweet subject-to deal, taking over their mortgage payments and, in turn, getting the keys to the kingdom with minimal initial cash outlay.
The initial costs at closing, including the purchase, the sprucing up, and a couple of months of mortgage payments, are capped at 10% of the purchase price. That's just $15,000 to get this ball rolling. But rather than running through the hoops of traditional lending, I've got my eyes set on private lending.
And this is where you come in. As a private lender, you have the power to ignite this project. We're looking at a loan of $15,000, a five-year balloon term, and a simple annual interest rate of 10%. You'd receive regular interest-only payments, and the principal returned in full at the end of the term.
Now, I know what you're thinking: "But I'd be in a second lien position!" Well, hold that thought. You see, you're not lending against the property itself but against the LLC that owns the property. A subtle difference that carries a lot of weight and provides a layer of protection that a traditional junior lien might not offer.
Let's fast forward six months, shall we? Our little property that could has gotten its makeover, and the market is loving it! The property sells for our estimated ARV of $220,000. We pay off the remaining $100,000 mortgage, cover the closing costs, and, voila, we're looking at a net profit of $105,000.
Here's where it gets even better. Once the property is sold, and the original loan is paid off, your generous loan of $15,000 is returned along with your accumulated interest. A win-win for all parties involved!
So, there you have it. A private lending opportunity wrapped up in a bow. It's more than just an investment; it's a journey through the thrilling landscape of real estate, underpinned by the reassurance and security of a well-structured deal.
Remember, this isn't just about profits; it's about building a community of investors who help each other succeed. Together, we can make real estate dreams a reality, one investment at a time!
