RT Real Estate Group offers opportunities to invest in real estate without the hassle or stress of dealing with a rental property. How many people reading this right now have invested in, or thought about investing in, real estate by buying a property to rent out to tenants? There is nothing wrong with this path and you can earn very good returns. However, do you want to be a landlord and deal with tenants and toilets or do you just want to earn a steady return with your investment secured by real estate? If the latter, we may have an option for you.
When we meet with homeowners who want to sell their property we give them a couple of purchase options. One or more of the options may include giving some cash to the seller upfront and making payments to them over time for the balance. The down payment cash we give to the seller comes from our private investors.
In other situations we may work with private investors to finance the whole purchase price. This could be for a single family house or a multifamily income property for either a short term (less than one year) or long term (greater than one year) investment period. In either situation, we would put together a business plan explaining what we plan to do with the property and how much of a return the investor could expect to receive.
Private investors are people just like you who have some money that they want to invest in a secured investment and earn a good return. The source of this money can be from savings, credit lines or retirement accounts (IRA or 401k).
When we buy a house or multifamily property and require some cash for the purchase or renovations, private investors lend us the money. The loan is secured with a promissory note and deed of trust that is recorded against the property that we are buying.
A Promissory Note is a "promise to pay" that shows the details of the loan including the interest rate, payment schedule and other terms that explain how the borrower must repay the investor. This document is signed by the borrower and kept by the investor (lender) until the loan is ready to be repaid. Once the loan is repaid the investor returns the original document to the borrower.
A deed of trust, also known as a trust deed, is signed by the borrower and recorded at the County Recorder's office where the property is located. The property is collateral for the loan and once recorded the deed of trust "clouds" the title and lets the world know that there is a lien on the property for debt owed. The recorded deed of trust is the investor's (lender's) security that allows him or her to be paid when the property is sold.
Recording a deed of trust is the first step to secure the investor's loan. By recording the deed of trust the investor has the ability to foreclose on the property if the borrower defaults. This is why it is very important that the property has sufficient equity to "cover" the investor's loan. Our investor's loans will be in first or second position and you will know what the equity is before making any investments.
If you are interested in learning more about us and our business please feel free to call us or submit the form below. We would be happy to explain the process with you over the phone or in person at our office or at another location that is convenient for you.
Once you understand the process and are ready to move forward we will add you to our prospective investors list and will let you know when we have an investment opportunity available. When we have an investment opportunity we will put together a business plan for the property outlining the purchase price, appraisal, market rents, repairs (if required) and our exit strategy. This will allow potential investors to understand what the property is worth and what we intend to do with it.