Invest With Us
Private Investing
How does this work?
If you’re not earning the return you want on your investment dollars, your money may not be working hard enough for you. Sometimes it is volatility that gets in the way. Sometimes it is the management of a fund. Sometimes it is a sector that is going through challenging times. Sometimes it is a lack of clear-cut goals.
Whatever the reason, Working With Houses, LLC is a real estate investment company dedicated to providing you with education and strategies to consider that give you more control over your investments. In doing so, you can make them grow at better-than-average returns while being secured by real estate. No need to ‘roll the dice,’ as they say.
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Do I need liquid cash or can I leverage a 401k, IRA or other type of investments to build leverage this opportunity to build wealth?
You do not need to have liquid cash. 401ks and IRAs can make great vehicles for these investments. Pension funds can also work. The flexibility of this type of investment does have to be handled properly when using a retirement account. We can walk you through the process and you will be pleased to see that the process is oftentimes very simple.
How does a Private Loan work anyway?
So, what is a Private Loan? It is a loan made usually by a person or their retirement account to a real estate investor or company (preferred) and is secured (collateralized) by real estate. Private Money Loan Investors are typically given a first or second mortgage that secures their legal interest in the property thus securing their investment. The property is then insured to prepare for catastrophic possibilities. We are not talking about the high Loan-To-Value (LTV) ratios the banks and savings and loan institutions make on homes for homeowners.
These ratios go as high as 96.5% for FHA. We typically employ low LTV ratios to our Private Lenders to increase the security of the loan. Our standard LTV ratios are usually under 75% of the value of the property securing the loan as many times can be low as 50%. This means additional security on the investment. For example, if a property is valued at $100,000, our Private Lender would usually not loan more than $75,000 dollars on the property. That’s a 75% loan-to-value ratio. This is obviously a much safer approach than that taken by conventional lenders.
These banks get into trouble because they make loans at a 90%, 95%, or even 100% loan-to-value ratio in unusual cases leaving them no equity for transfer costs if they are ever forced into a position where they have to take back the collateral property. The recent housing crash outlined these challenges quite clearly. It is in the private money lender’s best interest to minimize risk and maximize return and this is why private loans should not be made without a 25% safety net minimum. We do our due diligence so you can feel safe and secure in your investment.
If you are not secure, then it would not make sense to do the investment so we understand the importance of this! To get started all you have to do is Sign Up today. Or read on!
What is the process then for you to be a part of this?
This is where you get to see how simple this really is:
- We find a property that will make a good investment and do our due diligence.
- During this time, we figure out the numbers and fine-tune them so we have a solid estimate and expectation.
- We then present the opportunity to an investor
- The investor decides whether to fund the loan. If yes, we close the deal. If not, we simply find another one
- The entire process is as hands-off as you need it to be. We have found investors love to do as little as possible and have the security they need. We specialize in making both happen.
- When the property is sold, you make your investment back with interest. That’s it!