Start Real Estate Investing In New Jersey

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Investing In New Jersey


Making Money With Real Estate

It amazes me when investors struggle to find different avenues  to put their money to work. There is a better option than putting your money into stocks or mutual funds with high risks and long drawn out returns. It seems that people are intimidated by real estate and other non traditional forms of investing with real estate investment groups. Real estate gets a bad reputation for being “to risky” but in reality if you are working with the right company the risks are quite minimal. There are great dependable real estate investments all around us, and many ways you can stack the deck so the bets in your favor. Imagine making a safe investment where not only did you have complete control of your money but you also earned a 10% return in 3-12 months. This is a very safe investment that produces high rates of return and a higher level of security and liquidity than the stock market.

Private Equity Investors In New Jersey

Investors or private money lenders are often just people who have saved up a good amount of money, usually normal retirees with self directed IRA’s . They lend that money to real estate solution companies that can buy houses cash as-is and lend just like a bank or mortgage company. Common practice is to only lend about 75 percent of the actual property value. Many investors require you to have some “skin in the game” and will insist on a real estate investor providing the rest of the investment. This ultimately protects their investment and eliminates much of the risk involved. These types of investors in today’s market demand 8 to 12 percent annual interest on their money, plus two to four points up front. A lawyer drafts the contract and a legal document is signed for the loan. The real estate investor bringing the deal will sign a promissory note at closing agreeing to the lender’s terms and the lawyer will record a deed of trust securing the promissory note to the property.

A Protected Investment In New Jersey

For example if a house is sold cash and the  property is valued at $100,000, our Private Lender will never have to loan more than $75,000 dollars on the property to the real estate investment firm providing the deal. That’s a 75% loan-to-value ratio, a much safer approach than that taken by conventional lenders. Banks get into trouble because they make loans at an 85%, 90%, or even 100% loan-to-value ratio so leaving them no equity for transfer costs if they are ever forced into a position where they have to take back the collateral property.

Private lenders are protected in a number of ways in this transaction. Collateral is given by the borrower to secure the investor’s money. This collateral is usually worth about 40 percent more than what the lender has invested. Also a deed of trust is recorded to protect their claim as well. These rates and percentages with all of these protective actions are unheard of with traditional forms of investing, making real estate a “safer bet” in the eyes of some people.

Sell my house fast NJJ&M Home Solutions A Secure Investment

If you decide private lending is the strategy for you, then you will want to lend directly to a legitimate real estate company like J&M Home Solutions LLC with a proven track record and flawless performance. We are a real estate investment group with great relationships with our investor’s and are always providing new investment opportunities. We buy houses cash in New Jersey and help homeowners that need to sell a house fast for whatever reason.

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