Grey West Properties - Sacramento Real Estate Investors

Could you be our next Private Money Lender?

 

THE PROCESS IS SIMPLE

We find an extremely undervalued property we want to purchase - and once you give us the green light, we borrow the funds from you to purchase and renovate the property. At closing, you receive a mortgage on the home along with other important documents.

Next stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the size of the project), we’ll list and sell the property. When it’s time for closing, you’ll receive your principle plus 10% interest payment. It’s just that simple!

The goal is to keep turning that money for you and keep you making substantial profits so you keep coming back to us – building a long term mutually beneficial relationship.

Work with Us!

Get started with Grey West Properties.  Contact us today!

WHY YOU SHOULD CONSIDER PRIVATE LENDING

A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. When we have isolated a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Through that process, the lender can yield extremely high interest rates – 4 or 5 times the rates you can get on bank CD’s and other traditional investment plans.

Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream - while at the same time, provide excellent security and safety for your principle investment. You can do what the banks have been doing for years…make a profitable return on investments backed by real estate. There is no other investment vehicle like it.

Private Money Lenders

Frequently Asked Questions


Is there a Guarantee on your investment?

No. There is no government backed guarantee on these privately held real estate notes. You’re deriving protection from the equity in the real estate.  If at any time we were to default on the note, you have legal right to take the home (essentially foreclose on us).  Many investors laugh about this one and say, “I hope you’re a day behind on payments I’d gladly take this one off your hands”.  You have to remember we plan for the worst, and our homes have thousands of dollars of equity in them; and worse case scenario, often times is we don’t make “as much” as we hoped for.


Is the IRS approved to use retirement accounts in this manner?

Yes, these are established tax guidelines, and it is completely legal. However, we always recommend the services of a custodian to invest retirement funds tax deferred or tax-free.


Who buys Insurance?

We do. We pay for a title search and also a title policy on the home, just as we would in a typical transaction.


What kind of insurance policy do you get on the home?

If we purchase a renovation, we purchase a builders risk policy (Vacant Dwelling Policy). In case of any damage, insurance distributions would be used to rebuild or repair the property, or used to pay you off.


How much is it going to cost me to lend to you?

It is our policy to pay for all the closing costs so that your entire investment goes to work for you. We will pay for the closing agent, document preparation fees, notary fees, overnight mail fees, bank wire fees and recording costs. We do not charge any fees or commissions to our private lenders.


Will my money be pooled with other investors?

No, we do not pool funds. Your funding will be tied to one piece of property secured by a deed of trust.


If you default on the LOAN, HOW do I acquire the property?

In this unlikely scenario, we would simply transfer ownership of the property to you, if possible. If for any reason we did not (or could not), then you have all the legal rights of a secured lender. The best way to legally protect your interest in case of a default would be to hire an attorney. They normally would seek to get your investment back, any unpaid interest, any collection costs, all your attorney fees and maybe even more. A legal representative could advise you if it makes sense to foreclose or seek ownership the property to protect or recoup your investment.


What if the market gets worse and values go down?

is a great question and valid concern.  However, our strategy is not to speculate 3 years down the road.  Our goal is to purchase quickly and sell even faster.  Most of our projects are complete in 1-2 months and will be sold in 4-5 months.  The market doesn’t tend to shift that dramatically in a matter of months - it’s typically a longer process for an area to decline.  Remember, we’re buying in strategic areas where inventory is already low and demand is high; this greater minimizes our risk.


What interest rate do you typically pay your private lenders?

We currently pay 4-5 times what a typical bank CD is paying.  Our rates will fluctuate very little all depending on the purchase price and rehab involved.  Most of our lenders are paid from 10%.  The lower the purchase price, we can sometimes afford to pay a little higher rate to make sure our lenders make it worth their time.


How long will my funds be held?

majority of our loans are set up on an 8-12 month note, but it depends on the size of the project.  If we are doing a teardown and rebuild, we will have to wait on the county inspectors for approvals . This will cause delays. But, we account for all of those details upfront and will give you estimated time frame for the return on your investment.


What if I’m on a short-term note and sell the home after only 1 month?

It’s extremely important to us that we do not waste your time.  However, occasionally, situations may occur  where we find a buyer immediately.  In this scenario, we provide you with two options: we can either move the note to another property, or provide you with a minimum of 3 months interest.  Most investors see the strength of our purchase ability at that point, and simply move the note to another property.


When will I receive payments?

Typically, we pay one large lump sum at closing on a short-term note.  This is much easier to manage for both of us, especially if we’re working out of a retirement account.  On a longer note, we will pay monthly, just like a typical mortgage.