Secured co-investors/lenders: Viable real estate investments in a down market

I am looking for secured co- investor/lenders. I arrange loans for buyers (usually contractors or home builders) who acquire foreclosed property at rock bottom prices to fix it up and re-sell. They have expertise and experience, but not enough capital to take on the single or multiple projects they have in mind. They are prepared to pay interest and AND share profits.

Concept
The co-investor share of the projected profits is secured because the amount is added to the mortgage upfront. His/her profit share is therefore paid out first when the property is sold and the entire mortgage loan is repaid. This way the investor is fully secured and does not need a hands-on invovement in the project. In return the investor accepts a smaller profit share while the property owner has the opportunity to sell for maximum price and realize significant profits. If the property does not sell and is rented out, the co-investor continues to receive the monthly mortgage payment.

Typical loan terms
Typical loan terms are as follows:
- Loan amounts: $20,000-$100,000
- Normal registered, and fully secured first mortgage
- Attorney appointed to represent the mortgage investor
- Interest rate: 8-14%, paid monthly
- 10%-30% of projected profits added to the loan amount upfront
- Total mortgage loan: 50-60% of appraised value (when renovated)
- Term: 12 months
- Projected project time: 6-8 months

Home Equity Line of Credit (Heloc)
If you want to raise the investment funds from real estate I can arrange a Heloc. Rates can be fixed or floating, currently in the 4-6% range.

Contact me