Do you have money you’re looking to invest? Does the volatility of the stock market scare you (if not, it should)? Are you looking for a passive investment that is completely hands off? If so, perhaps becoming a private money lender and investing with Heritage Home Solutions, LLC may be the right fit for you.

So what is a private money lender and what does it mean to invest with us?

A private money lender is fairly simple actually, it is simply someone that uses their own money and lends it to someone else. The terms of the loan are negotiated directly between the two parties and once some basic paperwork is agreed to and signed, the transaction takes place.

So how would you invest with us? Well, when we buy homes, we buy them using a variety of funding sources. Some of those sources are lines of credit we have with traditional banks, hard money loans, and private money loans. If the terms were right for both you and us, we could use your investment to purchase our next property.

So why would anyone consider doing this and who else does it? For the right individuals this can be a lucrative investment because any loan made is done directly to the title company (our company never touches your money) and if we fail to make the agreed to payments on time or we default in any way, you can potentially take ownership of the property you funded. You can even drive by the property whenever you want and physically see your investment (not so easy when investing in the stock market).

If this process sounds familiar, it should. This type of investment is done by the largest and wealthiest corporations in the world every, single, day. Who are these corporations? BANKS! This investment is literally what a home mortgage is. The only difference is the mortgages we utilize are short term (usually 12mos or less as opposed to 15yrs or 30yrs) and are done by individuals using their own money (as opposed to a bank that uses its customers deposits to make the loans).

If we were to decide that working together was going to be a mutually beneficial relationship, the way the process works is simple and is described as follows:

1. We identify a property we intend to buy

2. We present the opportunity to you with the numbers we anticipate that the deal with spin off

3. We sign documents outlining the agreed to terms and securing your rights to the property

4. You send the agreed to amount to the title company that we will be purchasing the property through

5. We close on the purchase of the property with the title company where you are simultaneously named a lien holder on the property (as you now have equitable interest in the property)

6. We make monthly/quarterly/lump sum payments to you for the agreed to interest amount on your investment (the periodicity of the payments and the interest rate are all agreed to in step 3)

7. We remodel the property and then list it for sale at a higher price than what we purchased it for

8. We sell the property through a title company to a new homeowner and at that closing you get all of your principal back with any agreed to interest

9. Rinse and repeat on the next property

Disclaimer: Past performance is not an indicator of future performance and all investments have risk. No investment is or can be guaranteed.