Hello to All,
I am just getting into Real Estate investing ... buying properties, rehabbing them and then either selling them ... or refinancing them and renting them for income.
I've been talking with several private and hard money lenders and they said that before the credit crunch only about 15% of hard/private money deals went to refinance as an exit strategy ... most were sold on the open market, but now ... up to 91% are going to refinance to get the lenders paid off in a timely manner.
So, it is increasingly important to hard/private money lenders that a developer have a credit score in the range that would give them confidence that the developer could refinance, if necessary.
I need a silent partner who has a credit score (FICO > 690). The only responsibility of the silent credit partner would be to take the risk of purchasing the properties with me and then helping to refinance the properties, if we can't sell them, so that the hard money lenders can be cashed out of the deal.
After refinance, the partner would quit-claim the property over to me for the consideration outlined in our partnership agreement.
These investments will all be secured by Real Estate that we've purchased at 20% to 50% below market value.
I have been working on this for a couple of months and now have several deals that are pending, but because of the credit crunch, I need a credit partner.
I'm willing to pay up to 3% points of the profits, for no cash investment. You would simply purchase the properties with me.
What do you say?
You can't get a better offer ... earn 3% ... and there is no cash investment ... and you don't have to do anything but sign some papers, purchase some properties and oversee their rehabilitation and sale or renting for income.
This would be an excellent way for you to take the plunge into real estate investing and yet watch on the sideline as an experienced developer does the deal for you ... the profits aren't that great, for the credit partner, but neither is the risk.
For No Money Down, you will be a silent partner in several real estate transactions. As many as you wish, to facilitate the purchase and refinance, should that become necessary.
Actually, if I get enough Credit Partners, I might take refinance as the primary exit strategy, cash out the lenders, pay off the Credit Partner, and with a very low LTV mortgage be in a great position to Lease Option properties.
Joe Terry, CEO/Founder
email: joet at virtuola dot com