Many have asked me what I personally do to make money in this market. Well, here is my secret!
I have a builder that I personally do interim loans with. He pays $1,200 per month for 4 months to do this. These homes are already sold to buyers, they just need to get built.
Banks simply are not lending to builders in spite of the demand in North Texas.
See the article: http://www.dallasnews.com/
Here is how it works:
The builder submits draws to you as he builds the home, for example:
1st Draw $29,000
2nd Draw $41,000
3rd Draw $26,000
4th Draw $4,000
$100k Total - Some are $90-$95k
The homes sell for about $150k-$160k typically - so the Loan to Value is good.
If you would like to do this YOU can make $1,200 per month for 4 months and then you are paid back your initial investment and you can turn around and do it again if you like. Rate of return is SUPERB! Remember, these homes are already SOLD!
NOTE:
YOU are in FIRST LIEN position
Secured Note is in Your Name or your company's name
Personal Guaranty from builder - plus corporate guaranty
Deed of Trust in your name or your company's name (LLC or ?)
You will need $90-$100k liquid. If you would like to consider doing this let me know. I can send you the legal documents to review.
If you do not have access to $90-$100k I have other projects where you can invest for less, just let me know.
Homes will be built in Arlington, TX (Home of the Dallas Cowboys) or in Sherman, Texas (Home of Several High Tech Companies).
Let me hear from you!
Regards,
Ron Black
972-897-6190
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