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Private Investment Programs

real-estate-investment

What is the 10% Guarantee?

We offer private investors a 10% guaranteed annual return backed by real estate.

What is Private Money Lending?

It is a loan secured by real estate. Your money plays the same role in our deals that the bank plays in your own home.

Our investors take a first or second position on a private mortgage in our rehab properties.

Our standard Loan-To-Value ratios is 70% of the value of the property securing the loan and frequently as low as 60%. This means that Reboot never acquires a property for development unless we are sure we would be able to immediately liquidate it for a 25% to 40% more than the original purchase price. This secures our investor’s money be ensuring that they retain the right to control an asset worth more than their investment from day one.

Banks get into trouble because they make loans at a 90%, 95%, or even 100% loan-to-value ratio leaving them no equity.  If they are forced into a position where they have to take back the property, all transfer and holding costs come directly from their investment resulting in a loss.

Because we only buy property at a discount, our investors never face that issue.

How do we acquire properties at such low prices?

There are many reasons individuals sell properties at a discount but the primary force pushing sellers to take a discounted price is the complexity of transferring real estate and the non-liquid status of property as an asset.

The average person will buy or sell fewer than 5 properties in a lifetime. This relative lack of experience combined with the often serious carrying costs of real estate assets and the regulation and red-tape involved in transferring ownership means that we can provide real assistance to distressed property owners by buying things as-is, on a rapid timeline with cash.

How can I become an investor?

Funny you should ask…See below.

 

Investor Programs:

Project Based Short Term Lending

This investment is ideal for investors with significant chunks of cash that they would like to park for the short term while growing at 10%.

The investor takes first position in a private mortgage covering purchase, selling and rehab costs of a specific project. Properties are purchased at discount, improved and then sold. In the unlikely event of a default, the asset is awarded to the lender who is in first deed position on the property with all existing equity and improvements.

Investors receive a prospectus detailing the property’s purchase details, anticipated scope of work, after repair value and project profit. Decisions need to be made quickly in the period between contract signing and closing. Funds must be transferred to escrow in a single transaction within 48 hours of acceptance.

Details:

  • 100% purchase financing (typically purchased at 65% or less of After Repair Value)
  • Interest is rolled into the loan and paid in full at close of escrow or expiration of loan, whichever comes first
  • Typically a six month term with options for extension based on mutual agreement
  • Balloon payment
  • Minimum Amount – $250,000

Long Term General Capital Lending

This fixed rate return lending program is designed for lenders seeking a smaller initial investment with a longer term.

General Capital Lending Program pays interest to an investor via monthly electronic transfers. Standard investment period is 24 months; $10,000 minimum. Currently, interest is guaranteed at 10% per year.

Details:

– Contract is between investor (the lender) and Reboot Properties LLC (the borrower)
– Monthly interest payments are made via direct deposit into investor’s bank account
– Monthly interest payments commence one month following Reboot  Properties LLC’s receipt of money
– Standard investment period is 24 months with an option to extend if both parties agree
– Final payment includes full amount of the investment plus current month’s interest payment
– Reboot Properties LLC retains the right to pay off the loan early without penalty
– Minimum Amount – $10,000

To learn more about becoming a private lender or to begin the process of qualifying, call us at 312-566-7844 or email info@RebootProperties.com