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Let's Work Together!
There are 13+ real estate professionals that play vital roles in guiding a buyer or seller through the real estate process. When we are purchasing properties, that number is closer to 19+. That's because we appreciate the value professionals like you bring to the table, and we're more than happy to work with you!
Our Investors are part of that group!
A Little About Us
WASY HOMES is a premier Real Estate Investment & Solutions Company, whose goal is to help homeowners while improving the overall standard of living in a community.
We assist homeowners facing a multitude of various real estate problems, and we purchase multiple properties each month, with a focus on Residential Redevelopment to help revitalize communities.
Our success in assisting homeowners and communities is only possible with the help of the many other Real Estate Professionals that play a role in the transaction process, which includes our Investors.
We have invested a great deal of time, energy, and capital investment into our real estate education, attending the nation's premier real estate investing education program - Fortune Builders Mastery. Beyond the principles of sound investing, we were trained on how to build a successful business based on systems and predictability. Having completed over 1,000 real estate deals, Fortune Builders coaches and systems have allowed us to strategically invest in real estate, grow, and expand our business, and they are available for us to leverage when analyzing our real estate deals.
Overall Investment Approach
Our overall investment strategy and specialty is to purchase distressed properties at a deep discount - usually 30% to 50% below market value, and renovate and sell those properties to retail homebuyers and landlords.
At WASY HOMES, we pride ourselves on having a strong foundation of real estate knowledge and training. Our focus is on providing SOLUTIONS for our clients and finding VALUE for our investors by locating ugly, vacant homes that are eye sores and we put them back into use after renovation.
Our core business lies within our systems, education, and knowledge of the real estate industry. We did not just buy a CD off the internet and become a real estate investor overnight. We have spent thousands of dollars to learn how to be successful in this business and do it the right way. Through our affiliation, we are connected with a national network of investors that provide continual support and weekly trainings on changes throughout our industry. This process has allowed us to circumvent many pitfalls most novice investors would make. Learning the hard way is not a phrase in our vocabulary, and we certainly would not ask anyone to invest with us if we weren't confident enough to invest ourselves!
Our Business Strategy
- We purchase distressed residential properties 30%-50% below current market value
- We purchase, renovate, and sell these properties to retail buyers and landlords
We Follow A Strict Due Diligence Process
We have a systematic and disciplined approach when purchasing investment properties, putting each potential investment through a strict due diligence process. This rigorous set of criteria includes, but is not limited to, the following:
- Comparable property analysis and examination by a certified, independent appraiser
- An economic study of the neighborhood, city planning, and development
- Demographics of area, marketability, and growth potential
- Statistics on the crime rate
- Public transportation and schools
- Overall condition of the property, including heating and air, plumbing, electrical, roof, and structural condition
What’s Our Competitive Advantage?
Our company can acquire great deals on properties because we have the ability to act quickly and can close with CASH on the seller's timeline. This is why we can buy properties at such a discount. Obtaining loans through private money lenders gives us this competitive advantage over other investors who sometimes take weeks to go through the time-consuming bank approval process in order to purchase properties.
We have an aggressive TEAM approach, and a top-notch ability to expand our client base through our knowledge of deal structuring and advanced real estate techniques.
We also employ marketing strategies as soon as we purchase a home - giving us a fair advantage over a Realtor. Typically, most realtors don't spend time or money on marketing or lead generation strategies. As a result, it can sometimes take months to attract potential buyers. Often times, we are able to find our own buyers, allowing us to secure a strong sales price and save on sales commissions. Our renovation process is also down to a science with handpicked and proven construction crews who know we are not retail clients. We pay wholesale prices to all contractors and typically get bulk discounts on all materials.
Advantages Of Working With Us
- We have the business systems and knowledge to purchase properties QUICKLY and with CASH
- We create value by finding ugly, vacant homes and putting them back in use after renovation
- We pay wholesale prices to all contractors and typically get bulk discounts on all materials
- We have a creative marketing system to find and purchase properties before they're ever listed
- We find our own buyers, allowing us to secure a strong sales price and save on sales commissions
Investing with us also provides a win-win for the homeowner. With your cash funding, we can offer homeowners something very few buyers can. We are helping sellers by purchasing their homes on their timeline -- in as little as 10-14 days. Knowing that we're going to renovate the home and are buying in AS-IS condition is a very important factor to sellers who live in older, outdated homes, or those needing repairs. Sellers are also not required to pay any attorney fees, closing costs, home warranties, inspection fees, realtor commissions, etc.
We are not the perfect fit for everyone, but for the seller with the right motivation, these features are a necessity.
Wasy Homes Vs. Traditional Buyer
Here are just a few benefits homeowners have when working with WASY HOMES to sell a home:
- CASH OFFER
- NO COMMISSIONS
- QUICK CLOSE
- NO FEES
- PAY NO CLOSING COSTS
- WE BUY THE HOUSE AS-IS
- NO APPRAISAL
- NO LENDING RESTRICTIONS
Most homeowners have no idea what options are available to them beyond listing a house with a Realtor or trying to sell the house on their own and hoping for the best. We provide a unique alternative to listing their house on their own or with a Realtor.
When we work directly with a homeowner, what we provide not only makes for a smooth transaction, but also adds up to thousands upon thousands of dollars in savings compared to selling a home through traditional means.
Investment Buying Criteria
Our goal is to buy distressed homes in stable areas where there is still strong buying demand. Part of our grand vision is to improve the overall quality of living in both urban and suburban neighborhoods.
In addition to improving overall quality of life, we are committed to increasing the value of real estate in our community. Our company builds value by rehabilitating properties that are in significant need of repairs. We target distressed properties and breathe new life back into them by renovating and improving the condition of the property. By doing so, we create beautiful homes and encourage home ownership.
The ability to identify a wise real estate investment is certainly a learned skill. We have been thoroughly trained in that skill - along with the intuition to spot these great investment opportunities in today's market.
Types Of Properties We Target
- Distressed properties in significant need of repairs
- Properties where sellers need to sell quickly
- Properties owned free and clear
Not every opportunity is a "good deal", and we have built our company on a stable foundation of knowing our numbers. If the numbers don't make sense to us, they certainly won't make sense to our investors.
Our goal is to be in business for many years and brand a company that will be passed down to our children. That cannot be accomplished by taking uncalculated risks.
How Do We Buy Homes So Far Below Market Value?
At WASY HOMES, we have created a marketing machine that produces a consistent flow of high-quality leads. We are different from our competitors because we don't just submit offers on MLS properties - we take it to the next level. Our creative marketing strategies allow us to reach the homeowner directly, before the property even goes to a Realtor to be listed on the MLS, increasing the purchase price.
- Buyer Squeeze Pages
- Seller Squeeze Pages
- Primary Websites
- Facebook Business
- Google Business Listings
- Google Ad Words
- Back Tax
- Free & Clear
- Code Violations
- Expired Listings
- Non Owner Occupied
- Bandit Signs
- Networking Events
- Door Hangars
- Other Wholesalers
- 2 House Banners
- Bird Dogs
- Box Truck
How Do We Sell Properties Quickly?
There are many methods we use to sell properties quickly. We invest a lot of time and money into marketing to build a strong list of buyer clients for our homes.
Despite what the media says, there are tons of buyers out there who are aware that numerous opportunities exist in today's real estate market. The problem is: they don't know how to identify and analyze them to ensure they are actually getting a good value.
That's where we come in. We are constantly on the hunt for the next great buying opportunity and use proven techniques to analyze investment properties.
Our ability to locate a great real estate deal covers all types of real estate investments. We can identify great buying opportunities for the following types of buyers:
- Retail Buyers
- Rehab Buyers
- Landlord Buyers
Methods We Use To Sell Properties
- Bandit signs & Gorilla Marketing
- Realtor/List on MLS (Multiple Listing Service)
- Internet/Listing Websites
- Pre-Listing Walkthroughs
What Is Private Lending?
A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage securing their legal interest in the property and securing their investment.
When we isolate a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home.
Through that process, the lender yields extremely high interest rates - 4 to 5 times the rates you get on bank CD's and other traditional investment plans.
Sources of Private Money
- Self-Directed IRA
- Profit Sharing
- Personal Savings, Trust Fund, or any other money sitting around...
- Many are TAX DEFERRED PROFITS
Essentially, private money lending is your opportunity to become the bank, reaping the profits just like a bank would. It's a great way to generate cash flow and produce a predictable income stream - while at the same time, providing excellent security and safety for your principal investment.
You can do what the banks have been doing for years...make a profitable return on investments backed by real estate. There is no other investment vehicle like it!
How The Process Works
The process is simple. We find an extremely undervalued property we want to purchase, and once you give us the green light, we borrow the funds from you to purchase and renovate the property. At closing, you receive a mortgage on the home along with other important documents.
Next stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the size of the project), we list and sell the property. When it's time for closing, you'll receive your principle and interest payment. It's that simple!
The goal is to keep turning your money and increasing your profits for you so you keep coming back to us - building a long-term, mutually beneficial relationship.
Typical Hold Time
- Rehab Flip: 3-6 Months
- Wholesale Flip: 3-15 Days
- Short Term Rental: 12-24 Months
Investment Deal Scenario
Here's what the numbers would look like on a typical renovation project, with a 6 month hold (including rehab & re-sell time) with a private lender return of 10%
Total Invested: (6 Month Hold)......$163,000
Lender Potential Return On Investment: $8,150
How You Benefit From Private Lending
You, as the private money lender, can benefit greatly from investing your capital. A real estate mortgage/deed of trust provides you with security instruments you would not get with other investments. You also have added layers of protection because of how we buy, and because you have recourse available to you in case we were to default on the loan.
We currently pay 4-5 times what a typical bank CD pays. Our rates fluctuate very little, depending on the purchase price and rehab involved. The lower the purchase price of a home, the higher the rate we can pay. That's the make sure our lenders make it worth their time. Private lending means you can relax while your money is working for you.
Our equity is built in the purchase of the home, where we buy 30-40% below a retail buyer - which creates instant equity. In a typical transaction, we also cut out the middleman costs, such as: commissions, mortgage broker fees, loan fees; and our attorney costs are also lower because there is less work for them to review.
What's In It For You?
- Safe investment secured by real estate
- High returns on your money
- A predictable income stream because rates fluctuate very little
- No management costs
- No daily headaches with managing contractors
Our purchase strategy allows us to offer buyers a fully renovated home at or below everything else in the neighborhood. We walk away from hundreds of "close" deals that do not meet our specific buying criteria, and simply won't buy unless it makes sense for everyone involved.
Why Private Lending Is So Compelling
- Passive income (minimal time involved)
- No dealing with tenants
- No manual labor renovating properties
- No dealing with unscrupulous contractors
- Short-term use of lender's money
- Sense of security that money will be coming back soon
- Secure collateral position in marketable and liquid real estate
- Borrowers do the HARD WORK of finding the collateral
- Borrowing put THEIR MONEY into lender's collateral
- Borrowers put THEIR TIME and LABOR into lender's collateral
- Borrower takes majority of the risk
- If lender must foreclose, lender makes even more money
- Multiple loans can be made at one time
- It is easy and clean work
- Huge annual industry business loan volume
- You make money while you are sleeping
- It improves the golf game by allowing more play time
- Profits can be tax free
- It is PROFITABLE with no cap on earnings
Risks Vs. Rewards
Sitting In Bank
- $100,000 x 1% interest
- 12 Month Term = $1,000 ROI
Real Estate Private Lending
- $100,000 x 10% Interest
- 12 Month Term = $10,000 ROI
- Completely Unsecured
- Completely Uninsured
- Invest at Market Price
- Returns are Unknown
Real Estate Private Lending
- Secured by Deed of Trust or Mortgage Deed
- Collateral is Fully Insured
- Collateralized Below Market Value
- Returns Ae Fixed and Agreed Upon Term
- Tangible Asset
How Private Money Helps Our Company
Private money lenders bring speed and efficiency to our transactions, and our leverage is far greater when we purchase using private cash funds.
Many of the homes we purchase are in need of a quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Many traditional home sales fall out of contract because of financing issues. Using quick cash as leverage allows us to negotiate a much lower purchase price and reduce our risk.
Being able to offer a fast closing with private funds motivates sellers to accept our offer over the competition, and entices them to take a much lower price than they would from a conventional buyer.
Lending guidelines are also continually changing and are requiring applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
On a new home purchase needing renovations, private lender funds will be allocated to the purchase price, renovations, carrying costs, cost to resell, and a small buffer for unexpected expenses.
Our Benefits Of Using Private Money
- We won't have to deal with banks, applications, approvals, etc.
- We can buy at deeper discounts
- Gives us a competitive advantage above the rest
- Allows us to buy with cash - Cash is King
We Protect Our Lenders
Mortgages offer the banks solid, long-term, fixed returns. You can put yourself in the position of the bank by directing your investment capital, including retirement funds, to well-secured real estate mortgages. Mortgages have ultimate safety because if default occurs, the bank can recover its investment as the first lien holder on the property.
Each property we acquire is put through a rigorous evaluation process to assess the profitability before the property is ever purchased. "Integrity" is an essential part of our business, and we only make sound investment decisions. For your protection, you are also provided these documents to secure your investment capital:
Promissory Note: This is your collateral for your investment capital.
Deed of Trust/Mortgage: This is the document that is recorded with the county clerk and recorder to publicly secure your investment against the real property provided as collateral.
Hazard Insurance Policy: This is where you as the private lender would be listed as the "Mortgagee" for your protection in case of fire or natural disaster, etc.
We do pay for a title search as well as a title policy on the home just as we would in a typical transaction. For a rental investment with a long-term note, we always keep a valid hazard insurance policy on the property to protect against casualties. You'll be named as a mortgagee and notified if the insurance was not kept current. In the event of any damage to the property, insurance distributions would be used to rebuilt or repair the property, or be used to repay you.
Common Ways Private Lenders Fund Deals
Cash held in most types of bank accounts can be accessed quickly and can fund your deals in minutes, instead of hours or days. Fees are generally minimal for wire transfers and cashier's checks.
Home Equity Line Of Credit (HELOC)
A home equity line of credit (HELOC) is a powerful source of funding. Unleveraged equity is dead money and it's not making any interest. You can easily tap into that money. It's a way to make sure you're in first position when we're ready to pull the trigger and buy a property.
Personal & Business Lines Of Credit
Personal loans and "signature lines of credit" can be obtained from most banks or credit unions by anyone with good credit and a stable income.
Sources Of Funding For Private Lenders
- Home Equity Line
- Personal & Business Lines of Credit
- Retirement Accounts
- Liquidated Securities & Investments
More and more private money lenders are using their IRA funds to invest in real estate. A self-directed IRA is essentially the same as a traditional IRA, but allows you to purchase a broader range of investments, including real estate.
Liquidated Securities & Investments
Investments are a way to put your savings to work earning more money. However, if your stocks and investments have not performed as you expected, it might be time to consider other investments. As you know, stocks can be liquidated when you wish.
Investing With A Self-Directed IRA Account
Most people think that an IRA can only be used to purchase investments like stocks and mutual funds. But that's not true! You can get private mortgage loans using the funds already in your IRA's and other retirement plans.
The IRS has set forth guidelines on what you can and cannot invest in with your IRA. Many people are surprised at the scope of options available. From tax liens, gold, real estate investments, and real estate notes, IRA's are much more powerful than people realize. If you add that to the power of a Roth IRA, which allows you to enjoy your earnings tax-free or deferred, you've got a fast road to an easy retirement!
However, for you to use retirement accounts for loans, they must be administered by a third-party custodian. After selecting your custodian, you send them a transfer form and they'll do all the work for you. After that, you are ready to make private mortgage loans.
Retirement Accounts That Can Be Self-Directed
- Roth IRA's
- Traditional IRA's
- SEP IRA's
- SIMPLE IRA's
- 401K (Solo)
- 401K (Qualified Plan)
- Educational Savings Accounts
- Health Savings Accounts
*Profits can be tax free or tax deferred when you invest with one of these vehicles
Investment Terms & Conditions
When working with private lenders, $50,000 is our minimum standard investment. When first investing with us, a lower initial investment amount may be agreed upon to ensure you're confident when working with our company.
The majority of our loans are set up on an 8-12 month note; however, it depends on the size of the project. If we are doing a teardown and rebuilt, we will have to wait on the county inspectors for many approvals - thus causing delays. We account for all those details up front and will give you an estimated time frame for the return on your investment. Also, we do not pool funds - your funding will be tied to one piece of property, secured by a deed of trust.
Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we're working out of a retirement account. On a longer note, we will pay monthly, just like a typical mortgage.
1st Or 2nd Lien Position:
The Investor, as "mortgagor," has the right of first lien holder and Power of Sale on the property. The 2nd lien position is placed behind a senior mortgage. You are probably used to hearing the terms first and second mortgage. The second mortgage is a junior lien because it's in 2nd position. The senior lien or first mortgage must be paid prior to the 2nd lien.
Frequently Asked Questions (FAQs)
What is private lending?
When we have isolated a home well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Lenders can earn high interest rates - generally 4-5 times the rates you can get on bank CDs and other Traditional Investment Plans.
How is the money used?
On a new home purchase requiring renovations, the cost will be allocated to the purchase price, renovations, carrying costs, cost to resell, and also a small buffer for unexpected expenses.
Why don't you get a traditional loan?
There are many reasons, but the primary reasons are time and negotiation leverage. Many of the homes we purchase need a quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Our leverage is far greater when we purchase using cash. Many traditional home sales fall out of contract because of financing issues, and this allows us to negotiate a much lower purchase price and reduce our risk.
Lending guidelines are also continually changing. New requirements include applications, approvals, junk fees, and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
How can you afford to pay such high returns?
We make our money on the purchase. We may pay very high returns, but it allows us to purchase 20-30% below a retail purchaser. That instantly creates thousands of dollars in equity. We typically also cut out the middleman in transactions, such as: commission, mortgage broker fees, loan fees; and our attorney costs are lower because there is less work for them to review.
Are you really helping sellers?
Absolutely! With your cash funding we can offer something very few buyers can. We are buying on their timeline in as little as 10-14 days. Knowing that we're going to renovate the home and buying in AS-IS condition is a very important factor to most sellers of distressed property. They 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 sell 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; his minimizes our risk.
What interest rate do you typically pay your private lenders?
We currently pay 4-5 times what a typical bank CD is paying. Our rates will fluctuate very little, depending on the purchase price and rehab involved. Most of our lenders are paid 10%. For a lower purchase price, we can sometimes afford to pay a higher rate to make sure our lenders make it worth their time.
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 county inspectors for approvals. This will cause delays. But, we account for all those details up front and will give you an estimated timeframe for the return on your investment.
What if I'm on a short-term note and you sell the home after only 1 month?
It's extremely important to us that we don't waste your time. However, occasionally, situations may occur where we find a buyer immediately. In this scenario, we provide you with two options: we can either move the note to another property or provide you with a minimum of 3 months interest. Most investors see the strength of our purchase ability at that point, and simply move the note to another property.
When will I receive payments?
Typically, we pay one large lump sum at closing on a short-term note. This is much easier to manage for both of us, especially if we're working out of a retirement account. On a longer note, we will pay monthly, just like a typical mortgage.
Is there a guarantee on your investment?
No. There is no government backed guarantee on these privately held real estate notes. You're deriving protection from the equity in the real estate. If at any time we were to default on the note, you have legal right to take the home (essentially foreclose on us).
Many investors laugh about this one and say, "I hope you're a day behind on payments. I'd gladly take this on off your hands." You have to remember we plan for the worst, and our homes have thousands of dollars of equity in them; and worst-case scenario: we simply don't make as much profit as we planned.
Is the IRS approved to use retirement accounts in this manner?
Yes, these are established tax guidelines, and it is completely legal. However, we always recommend the services of a custodian to invest retirement funds tax-deferred or tax-free
Who buys insurance?
We do. We pay for a title search and a title policy on the home, just as we would in a typical transaction.
What kind of insurance policy do you get on the home?
If we purchase a renovation, we purchase a Builders Risk Policy (Vacant Dwelling Policy). In case of any damage, insurance distributions would be used to rebuild or repair the property, or to pay you off.
How much is it going to cost me to lend to you?
It is our policy to pay for all the closing costs so that your entire investment goes to work for you. We will pay for the closing agent, document preparation fees, notary fees, overnight mail fees, bank wire fees, and recording costs. We do not charge any fees or commissions to our private lenders.
Will my money be pooled with other investors?
No, we do not pool funds. Your funding will be tired to one piece of property secured by a deed of trust.
If you default on the loan, how do I acquire the property?
In this unlikely scenario, we would simply transfer ownership of the property to you, if possible. If for any reason we did not (or could not), then you have all the legal rights of a secured lender. The best way to legally protect your interest in case of a default would be to hire an attorney. They normally would seek to get your investment back, any unpaid interest, any collection costs, all your attorney fees, and maybe even more. A legal representative could advise you if it makes sense to foreclose or seek ownership off the property to protect or recoup your investment.
What To Do Next
If you're interested in working together, fill out the form, and someone from WASY HOMES will get in touch with you to chat about how we can help each other.
If you're curious to learn more, feel free to send us an email at [email protected], or call us directly at (661)-269-7311.