your hometown home buyers
Private Money Lending
A structured, secure & profitable lending program, backed by real estate.
What is Private Money Lending?
A private money loan is a loan given to a real estate investor, secured by real estate. Private money lenders are given a first mortgage that secures their legal interest in the property and secures their investment. When we have found a home that is well under market value, we give our private lenders an opportunity to fund the purchase and rehab of the home. Through that process, the lender can yield high interest rates in a relatively short amount of time.
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Essentially, through private money lending, you reap profits just like a bank would. It’s a great way to generate cash flow and produce a predictable income stream – while at the same time, provide an excellent security and safety for your principle investment – backed by real estate.
The Process
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We find the property and present it to you, the lender, providing you with the current value, compared to the value it will be once rehab is complete. We share the timeline as well as the total investment required (purchase and rehab funding). Once you’ve agreed, we borrow the funds to purchase the property. At closing, you will receive a mortgage on the home along with other important documents. Each month, Hometown Properties will send you an interest only payment on your principle investment. Once the renovations are complete, (generally 3-6 months) we’ll list and sell the property. When its time for closing, you’ll receive your entire principle payment. Our hope is to build a long-term mutually beneficial relationship.