Capable Home Buyers works with a number of people and businesses to achieve success. These include Private Lenders, Contractors, Real Estate Agents, Wholesalers and many more.
We buy distressed properties and these properties are found either through our direct marketing programs or we buy them from wholesalers. We also purchase foreclosures and properties from auctions but these are few and far between. It just depends on the results from our marketing and the general state of the economy.
On occasion our network of Real Estate agents will find a great deal on the MLS or even find a property that is not ready to be listed on the open market so they approach us to purchase the property directly. Capable Home Buyers also works with select agents and lawyers to purchase properties via the Short Sale process.
Regardless of how the property is found, it has to be purchased and rehabbed. As we concentrate on “distressed” properties, we are buying the property because either the home needs work or the seller is in a situation where they really need to sell. Either way, the property is always in need of either light, medium or heavy rehabilitation.
Capable Home Buyers works with Private Lenders to finance the purchase and the rehab of the property. We borrow from the lender up to 100% of the project cost including purchase and rehab. Some of our lenders don’t like to lend 100% so Capable Home Buyers puts in the balance of the funds required to enable and complete the project.
The lender legal contracts, promissory notes, security documentation, deed management, etc. are all prepared and managed by lawyers. The money from the lender is never sent to us directly. The money is sent to the lawyers Escrow Account. The entire process is managed by third party legal representatives to ensure all parties are protected. Importantly, the real estate is used to secure the private lender so that if anything happens to Capable Home Buyers, the lender can, at the very minimum, step in and sell the property to get their funds returned.
Once the property is ready for sale, Capable Home buyers will either sell the property via Owner Financing or a direct sale to a retail purchaser. Many of the direct sales are sold through a real estate agent and considered a standard home sale. Owner Finance is sold directly from Capable Home Buyers to the home buyer. They pay a deposit and Capable Home Buyers finances the balance for a longer term – typically a 15- or 30-year mortgage.
At the time of sale, the private lender has the choice to either have their money returned or keep it in for the long term and receive monthly interest payment. Many long-term agreements are interest only so the capital is preserved, however principle and interest can also be repaid.
Capable Home Buyers offer its lender complete flexibility regarding their investments therefore if the lender wants to invest for a short period then a Fix and Flip is a great earner. For the medium term then a Fix – Owner Finance sale is a great option as Capable Home Buyers can refinance the property to another lender at the preferred exit time. For the long term, Capable Home Buyers will pay interest and/or principle for any time period up to 30 years.
If you are a private lender and are looking to invest in a quality investment vehicle, Capable Home Buyers can help you be part of the win/win/win scenario. You will get you a great return, paid by quality buyers, managed by professionals and secured by real estate.