PML Frequently Asked Questions page:2
Are you really helping sellers?
Absolutely. With your cash funding, we can offer something very few buyers can. We are buying within their timeline in as little as 10-14 days. Knowing that we’re going to renovate the home and purchase it in as-is condition is a very important factor to most sellers of distressed property. The seller also won’t have to pay any additional fees.
What if the market gets worse and values go down?
This is a great question and valid concern. However, our strategy is not to speculate 3 years down the road. Our goal is to purchase quickly and sell even faster. Most of our projects are complete in 1-2 months and will be sold in 4-5 months. The market doesn’t tend to shift that dramatically in a matter of months - it’s typically a longer process for an area to decline. Remember, we’re buying in strategic areas where inventory is already low and demand is high; this greater minimizes our risk.
What interest rate do you typically pay your private lenders?
Most of our lenders are paid from 10%. Our rates will fluctuate very little, depending on the purchase price and level of rehab involved. The lower the purchase price, the more we can afford to pay as little higher rates to make sure our lenders make it worth their time. We work on a share the wealth model, intentionally focused on projects where all parties benifit.
How long will my funds be held?
The majority of our loans are set up on an 8-12 month note, but it depends on the size of the project. If we are doing a teardown and rebuild, we will have to wait on the inspectors for approvals. This may cause delays. But we account for all of those details upfront and will give you estimated time frame for the return on your investment beforehand.
PML FAQ