Basic Formula For One LLC To Attract Investors, PAY THEM Early And Often At Profit Levels Of 125% On Their Investment.
Any conversation leading to a blue print, or a how to guide, where any moderate investor can make a 125% on their investment inside of two years is worth having.
“Having access to a investment platform where investors know when, how, and where they can make outstanding profits. While being assured of a quick turn around time, pays more than decent returns.”
If an investor provides a LLC Company $20,000 and a property is purchased, how quick they can make a profit? When do they receive their monies, and how? When do they re-coop their investment and make a profit? When investors know this upfront, and can see at a glance how the project is performing, they win. Offer an investor $5,000 profit in six months, while they are secured by being on property title as security IS A WIN.
Providing Them Intervals of Payment / Options
"Consider just offering the $5,000 profit in six months as the only platform to attract investors. You might not have many. Offer them the ability to profit in the initial stages and also profit as you do, and you will have Too Many."
Initial stages identified as:
Stage One: Acquisition.
Stage Two: Improvements.
Stage Three: Selling Asset.
All three phases involve financing. Including electing to obtain cash out at third stage before the property has been sold; or easier, at 80% completed of the improvements - and at 80% LTV where the property has not obtained complete renovated value yet.
As per when you obtain financing, and you begin improvements, you offer the first opportunity for your investor to be paid. They invest $20,000 with you and you acquire a 1-8 Unit property. It will increase in value as you improve it. Once you have begun renovating the property, your investor may be paid to date, receiving $25,000. You may offer another chance for the investor to re-invest and profit with you, yet again. This can occur after you have completed half of the repairs to the property. The value has increased.
Heading now to Stage Two. Easily, you may increase their earning potential, while keeping the same next schedule of six months. They do carry additional risk of completing renovations on time, in order to receive another loan with favorable terms, for their next schedule of payments in full to occur.
At The Time You Do...
When you obtain financing at the Second Stage, you are naturally preparing to get to 80% of the renovations completed. Here is where you will take a portion of the would be profit to date, for yourself as well. Value has increased, so you take the equity here to be poised. Here you may offer a portion back to you investor, to off set risk in time it may take to sell.
Sell The Property, Offer Them To Participate In The Final Proceeds.
Easiest part to understand is why they participate, which is because they are not using their credit. They are not on the hook for the complete project, they share in the risk of it until the property is sold.
"Offer Them Low Risk, Low Rewards Upfront".
When you have a property that is currently worth $250,000 and with $75,000 in repairs, it will be worth $375,000. Once completed renovations occur and the property is sold is where one would expect to have made their biggest profit, or most of the money. However, it can be along the way, that they have received their money inside of two years... once at six months, and again at twelve months... while offering a slight more that they can make at sale which would be months 18 - 24 months.
"Offering them to make most of their money along the way offers you the ability for them to keep re-investing at the first and second stages, while not having to wait for that third stage of selling. Meanwhile, they may now invest with you in other projects, since they are not waiting for the property to be sold".
This is where the rubber hits the road. If you elect to have your financing include: No monthly mortgage payments, you are simply paying back the investors initial investments, at the time you obtain the loans. Why not offer them to profit as you do, as in, when you choose to obtain financing. Offering investors to be in a small stake in many projects, which will allow them to consider being more financially involved and participate in many more successes with you.
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