PRIVATE MONEY INVESTORS
What is a private money lender/investor? Private Money Lenders/Investors are private people or companies that use their own cash or lines of credit to fund real estate transactions. Their money usually comes from investments outside of real estate such as CDs, Stocks or even savings accounts.
We are looking for YOU! Paragon Investors, LLC is always looking to expand our investing partnerships. If you are looking to invest your personal money in real estate backed transactions, then this is the right place to be.
How are deals chosen? When we have a new property under review or contract, we will review your application to see if you are a correct fit for that property. If the property fits your pre-determined criteria, then we will contact you with the details of the deal. YOU get to choose if that investment is what you are looking for at the time.
What kind of ROI should I expect? When you apply to be a private investor with us, you can list your minimum acceptable ROI. This will ensure that you are not offered deals that do not meet your minimum criteria. Due to the ever-changing nature of real estate, a specific ROI cannot be guaranteed, but the more flexible you are, the more deals you will qualify for.
What position is my investment in? There are two types of funding that you can apply for:
First Position funding puts you in the number one position to get paid when the property has been fixed and flipped. This position will have a pre-determined APR and will be the first lender paid at the end of the deal. To receive the first position designation, you must be the primary lender for the deal and meet certain criteria for each property.
Second Position funding is the most common type of investment. This requires a smaller investment amount, and is typically considered "gap funding" to complete a real estate deal. The APR varies per property, but it typically similar to that offered to the first position lenders.
How do you protect my investment? Each real estate deal goes through an extensive checklist to help ensure a successful end result. You will be presented with a portfolio for each property, and can choose whether or not the deal is right for you. Note: The local real estate market is fast, with the majority going under contract in under a week on the market. An investor that can accept a property investment contract the same day is most likely to get the deal. Filling out your desired criteria ahead of time is key. The investor (you), will be presented with a minimum of 3 comparable properties (typically within 2 miles of the subject property) to show the estimated ARV, or an appraisal from a local, licensed appraiser (when available). A repair estimate will be performed by one of our team at the beginning of a deal, which will give a rough estimate of the rehab cost. Once a property is under contract, the investor will be provided with a full scope of work from a licensed/bonded contractor (once access to the property is allowed by seller - tenant rights may apply). For second position investors, an additional contract may be offered where we will agree not to further encumber the property with additional investors. This offer varies based on several factors, but is typically available for higher dollar investors.
What is my money used for? Your investment is in the purchase, repairs, and reselling of real property. Though less common, buy and hold opportunities (rentals) may also be available for our investors. Depending on the dollar amount of your investment, you may be funding the purchase, down payment, or repair costs associated with the deal. Your money is protected by real property, and though the end results can never be guaranteed (much like the stock market), real estate is typically considered the safer investment. We use only the most recent market valuations, and will not invest in deals where the profit margins are too tight to confidently make the flip. If you are presented with an offer and don't like the numbers, then you can simply wait for the next deal that comes along. Repeat investors are often offered first opportunity to invest in the next property.
Do you need to be rich to invest in real estate? How much are you looking to invest? You don't have to be rich to be a private money investor. Some deals can start with as little as $5,000, and most deals require only a few short months before you receive your return. The best part is, you can keep investing in more and more deals, and growing your money faster than most other investment strategies, and you don't have to be a seasoned investor to get started.
What is the maximum amount that I can invest? Some states will not allow an investment over a particular percentage of your net worth.
How long is a typical investment? A typical real estate deal will require between 4-8 months of investment time, depending on current market conditions. Some long-term options may also be available for transactions such as property rentals or other long-term holds.
How many times can I invest? There is no limit to how many times you can apply to be one of our private money lenders. If you have done deals with us in the past, you will likely be invited to participate in future deals as well.
If I'm paying for it, what does Paragon Investors do? Great question! We do ALL the work. After all, time is money. Let your money work for you, instead of you working for your money. You get the security of a real estate backed investment, without having to actually do the repairs. You get an entire TEAM of real estate professionals working hard to make you a profit, after all, we don't get paid any profits unless you get paid first!
Do I get any control over the flip? This is one of the rare times that you want to hear - NO! We are a full-service fix and flip team. This means we will do ALL of the work, while you sit back and wait for your check to come in. It's really that simple. You are welcome to schedule a visit to the property with one of our team members, or receive progress photos during the rehab, but you will never be asked to lift a finger in the flipping process. Trust in our team is key, as you will not be allowed to make design changes or special requests, though any concerns should be brought to our attention immediately.
I have my own property to flip, can you help? If you are looking to team up on a deal, please feel free to contact us right away and we will review the deal with you.
I'm interested! How do I apply? You may to become one of our investors. Remember, there is no-obligation for you to accept a deal, but you must apply so that we know what criteria you are looking for.