Apr 10 '08, 10:17 PMI have been thinking a lot lately about finding an easier way to finance the SALE of the rehabs that I own. Most buyers look at the house, love it and want to buy it. They ask if I can finance/lease-option but I am more interested in just selling the property and moving on. I turn them over to a mortgage broker I have and he either gets them financed or someone else does or they don't get financed.
Well I think there might be a solid demand for private lenders interested in these mortgages and other lending opps I come across daily. I'm not talking RE investors, I mean people in the community that have money earning very low interest rates in CD, IRA's or savings accounts. Obviously for someone that invests in RE all the time, a 10% return on a 90% LTV loan will not be enough juice for them. It's just not exciting enough for the risk. But a majority of the people that don't normally invest in RE would probably love those returns. Not to mention the occasional opp. for them to buy a note at discount, finance a very low LTV property, etc. I think when presented with one of these loans they would see it as a much less maintanence than buying a rental. It seems like a lot of RE layman that have cash laying around just go out and buy some rentals and realize how badly they suck.
Has anyone had any experience marketing to people that may not actually be RE investors or hard money lenders but just regular people looking for a decent return compared to what they are investing in now. It's something I'm looking into. I see a lot of oppurtunities on a weekly basis that might be a little to low of a return for myself but others with their money in CD's and mutual funds would most likely love.
Thoughts, opinions?
