Investors
Company Business Model
A Residential Redevelopment Company
WHO ARE WE?
SRF Property Solutions is a professional, full service real estate solutions firms that buy and sells properties throughout the Antelope Valley and surrounding areas of Southern California
In addition, our goal is to redevelop a large number of single family and multi family properties throughout the state with the intention of revitalizing communities and encouraging homeownership .
In addition, our goal is to redevelop a large number of single family and multi-family properties throughout the state with the intention of revitalizing communities and encouraging homeownership.
Important Fact About SRF Property Solutions
- Full service real estate solutions company in Southern California, specialized in buying and selling properties throughout the Antelope Valley.
- Focused on providing solutions for clients and value for investors by locating and renovating distressed properties.
- Our goal is to provide the absolute highest level of service to our clients.
Our Mission
SRF Property Solutions is dedicated to maximizing real estate asset values. We skillfully adapt to the diversity of individual investors, markets, and residents, through sound leadership and our unwavering commitment to serve. When a passion for real estate is combined with talented individuals who have an uncompromising drive to succeed, amazing things will happen. Our motto is ” Service you deserve. People you trust.”
Company Business Model
What's Our Competitive Advantage?
Our company can acquire great deals on properties because we have the ability to act quickly and can close with CASH on the seller’s timeline. This is why we can buy properties at such a discount. Obtaining loans through private money lenders gives us this competitive advantage over other investors who sometimes take weeks to go through the time consuming bank approval process in order to purchase properties.
We have an aggressive TEAM approach, and a top notch ability to expand our client base through our knowledge of deal structuring and advanced real estate techniques. We also employ marketing strategies as soon as we purchase a home giving us a fair advantage over a realtor. Typically, most realtors don’t spend time or money on marketing or lead generation strategies. As a result, it can sometimes take months to attract potential buyers. Oftentimes, we are able to find our own buyers allowing us to secure a strong sales price and save on sales commissions. Our renovation process is also down to a science with handpicked and proven construction crews who know we are not retail clients. We pay wholesale prices to all contractors and typically get bulk discounts on all materials.
Advantage to Working With Us
- We have the experience, business systems and knowledge to purchase properties QUICKLY and with CASH.
- We Create value by finding ugly vacant homes and putting them back in the use after renovation.
- We pay wholesale prices to all contractors and typically get bulk discounts on all materials
- We have creative marketing system to find and purchase properties before they’re ever listed
- We find our own buyers allowing us to secure a strong sale price and save on sales commissions.
Investing with us also provides a win-win for the homeowner as well. With your cash funding, we can offer homeowners something that very few buyers can.
We are helping sellers by purchasing their homes in their timeline in as little as 10-14 days. Knowing that we’re going to renovate the home and we are buying in as is condition is a very important factor to sellers who live in older, outdated homes, or those needing repairs. These sellers will also not be required to pay any attorney fees, closing costs, home warranties, inspection fees, realtor commissions, etc. We are not the perfect fit for everyone; but for the seller with the right motivation, these features are a necessity.
Company Business Model
SRF Property Solutions vs Traditional Buyer
Here are just a few benefits sellers have working with SRF Property Solutions to sell home:
- CASH OFFER
- NO COMMISION
- QUICK CLOSING
- NO FEES
- PAY CLOSING COSTS
- WE BUY THE HOUSE AS IS
- NO APPRAISAL
- NO LENDING RESTRICTIONS
Most homeowners have no idea what options are available to them beyond listing a house with a Realtor or trying to sell the house on their own and just hoping for the best. We provide a unique alternative to listing their house on their own or with a Realtor. When we work directly with a home seller, what we provide can not only make for a smooth transaction, but it can also add up to thousands upon thousands of dollars in savings as compared to selling a home through traditional means. Our “out of the box” creative approach to real estate investing is a cut above the rest.
How Do We Compare to a Traditional Buyer
Company Business Model
How We Sell Properties Quickly
There are many methods we use to sell properties very quickly. We invest a lot of time and money into marketing to build a strong list of buyer clients for our homes. Despite what the media says, there are tons of buyers out there who are aware of the fact that numerous buying opportunities exist in today’s real estate market. The problem is: they just don’t know how to identify and analyze them to ensure they are actually getting a good value. That’s where we come in. We are constantly
on the hunt for the next great buying opportunity, and use proven techniques to analyze investment properties.
Methods We Use to Sell Properties
- Bandit signs & Guerilla Marketing
- Realtor/ List on MLS (Multiple Listing Service)
- Internet/ Listing Websites
- Pre- Listing Walkthroughs
Our ability to locate a great real estate deal covers all types of real estate investments. We are able to identify great buying opportunities for the following types of buyers:
- Retail
- Landlord
- Rehabber
Private Lending
What is Private Lending?
A private money loan is a loan that is given to a real estate investor, secured by real estate. Private money investors are given a first or second mortgage that secures their legal interest in the property and secures their investment. When we have isolated 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 extremely high interest rates 4 or 5 times the rates you can get on bank CD’s and other traditional investment plans.
Sources of Private Money
- 41k
- Self-Directed IRA
- Profit Sharing
- Personal Savings, Trust Fund, or any other money sitting around..
- Many are TAX DEFERED PROFITS
Essentially, private money lending is your opportunity to become the bank, reaping the 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 excellent security and safety for your principal investment. You can do what the banks have been doing for years…make a profitable return on investments backed by real estate. There is no other investment vehicle like it.
How The Process Works?
The process is simple. We find an undervalued property we want to purchase and once you give us the green light, we borrow the funds from you to purchase and renovate the property. At closing, you receive a mortgage on the home along with other important documents. Next stage is the property renovation. Once the renovations are complete (typically 3-6 months depending on the size of the project), we’ll list and sell the property. When it’s time for closing, you’ll receive your
principle plus 10% interest payment. It’s just that simple! The goal is to keep turning that money for you and keep you making substantial profits so you keep coming back to us building a long term mutually beneficial relationship.
TYPICAL HOLD TIME:
- Rehab Flip: 3-6months
- Large Projects: 8-10months
- Wholesale Flip: 3-15 days
Private Lending
How You Benefit From Private Lending
You, as the private money lender can benefit greatly from investing your capital. A real estate mortgage/ deed of trust provides you with security instruments
you would not get with other investments. You also have added layers of protection because of how we buy, and because you have recourse available to you incase we were to default on the loan. We currently pay 4-5 times what a typical bank CD is paying. Our rates will fluctuate very little all, depending on the purchase price and rehab involved. The lower the price we pay for a home, we can pay a little higher rate to make sure our lenders make it worth their time.
Private lending means you can relax while the money is in a truly safe place, working for you.
What’s in it for you?
- Safe investment secured by real estate
- High returns on your money
- A predictable income stream because rates fluctuate very little
- No management costs
- No daily headaches with managing contractors
Our equity is built in the purchase of the home, where we are buying 30-40% below a retail buyer that creates instant equity at purchase. Also, in a typical transaction, we cut out the middleman cost, such as: commissions, mortgage broker fees, loan fees; and our attorney costs are also lower because there is less work for them to review. Because of our buying strategy, we are able to offer our buyers a fully renovated home at or below everything else in the neighborhood. We walk away from hundreds of “close” deals that do not meet our specific buying criteria, and simply won’t buy unless it makes sense for everyone involved.
Why Private Lending is So Compelling
- Passive income (minimal time involved)
- NO dealing with tenants
- NO manual labor renovating properties
- NO dealing with unscrupulous contractors
- Short-term use of lender’s money
- Sense of security that money will be coming back soon
- Secure collateral position in marketable liquid real estate
- Borrowers do the HARD WORK finding the collateral
- Borrowers put THEIR MONEY into lender’s collateral
- Borrower take majority of the risk
- If lender must foreclose, lender makes even more money
- Multiple loans can be made at one time
- It is easy and clean work
- Huge annual industry business loan volume
- You make money while you are sleeping
- Profit can be tax free
- It is PROFITABLE with no cap on earnings
Private Lending
HOW PRIVATE MONEY HELPS OUR COMPANY
Private money lenders bring speed and efficiency to our transactions, and our leverage is far greater when we purchase using private cash funds. Many of the homes we are purchasing are in need of quick sale within 10-14 days. A traditional bank requires 30-45 days to close a loan. Many traditional Home sales fall out of contract because of financing issues. Using quick cash as leverage allows us to negotiate a much lower purchase price and reduce our risk.
Our Benefits of Using Private Money
- We won’t have to deal with banks, applications, approvals, etc.
- We can buy deeper discounts
- Give us competitive advantage above the rest
- Allows us to buy with cash- Cash is King
Being able to offer a fast closing with private funds motivates sellers to take our offer over the competition, and entices them to take a much lower price than they would from a conventional buyer. Also, lending guidelines are also continually changing and are requiring applications, approvals, junk fees and strict investor guidelines. They also limit the number of investment properties that can be purchased by one company.
On a new home purchase requiring renovations, private lender funds will be allocated to the purchase price, renovations, carrying costs, cost to resell and a small buffer for unexpected expenses.
Private Lending
WE PROTECT OUR LENDERS
Mortgages offer the banks solid, long term, fixed returns. You can put yourself in the position of the
bank by directing your investment capital, including retirement funds to well secured real estate mortgages. Mortgages have ultimate safety because if default occurs, the bank can recover its investment as the first lien holder on the property. Each property we acquire is put through a rigorous evaluation process in order to assess the profitability before the property is ever purchased. “ integrity ” is an essential part of our business, and we only make sound investment decisions. Also, for your protection, you are also provided these documents to secure your investment capital:
Promissory Note: This is your collateral for your investment capital.
Deed of Trust/Mortgage: This is the document that is recorded with the county clerk and recorder to publicly secure your investment against the real property that we are providing as collateral.
Hazard Insurance Policy: This is where you as the private lender would be listed as the “Mortgagee” for your protection in case of fire or natural disaster, etc.
We do pay for a title search as well as a title policy on the home just as we would in a typical transaction. For a rental investment with a long term note, we always keep a valid hazard insurance policy on the property to protect against casualties. You’ll be named as a mortgagee and notified if the insurance was not kept current. In the event of any damage to the property, insurance distributions would be used to rebuild or repair the property, or used to repay you.
Common Ways to Private Lenders Fund Deals
CASH – Cash held in most types of bank accounts can he be accessed quickly and can fund your deals in minutes, instead of hours or days. Fees are generally minimal for wire transfers and cashier’s checks.
HOME EQUITY LINE OF CREDIT – A home equity line of credit is very powerful source of funding that may people have and don’t even think of. Unleveraged equity is dead money and it’s not making any interest. You can easily tap into that money. It’s a way to make sure you’re in first position when we’re ready to pull the trigger and buy a property.
PERSONAL & BUSINESS LINES OF CREDIT- Personal loans and “signature lines of credit” can be obtained from most banks or credit unions by anyone with good credit and stable income.
RETIREMENT ACCOUNTS- More and more private money lenders are using their IRA funds to invest in real estate. A self
directed IRA is essentially the same as a traditional IRA, but allows you to purchase a broader range of investments, including real estate. LIQUIDATED
Common Sources of Funding
- Cash
- Home Equity Line
- Personal & Business Lines of Credit
- Retirement Accounts
- Liquidated Securities & Investments
LIQUIDATED SECURITIES & INVESTMENTS- Investments are a way to put your savings to work earning more money. However, if your stocks
and investments have not performed as you had expected, it might be time to consider other investments. As you know, stocks can be liquidated as and when you wish. Sometimes you need to liquidate your investments because you need the money for something you want to purchase such as real estate.
INVESTING WITH A SELF-DIRECTED IRA ACCOUNT
Most people think that an IRA can only be used to purchase investments, like stocks and mutual funds. But that’s not true! You can get private mortgage loans
using the funds which are already in your IRA’S and other retirement plans. As it pertains to lending for real estate investments, enter the Self Directed IRA. The IRS has set forth guidelines on what you can and cannot invest in with your IRA. Many people are surprised at the scope of options available. From tax liens, gold, real estate
investments and real estate notes, IRA’s are much more powerful than most people ever realized. If you add to that power of a Roth IRA which allows you to enjoy your
earnings tax free or deferred, and you’ve got a fast road to an easy retirement!
However, in order for you to use retirement accounts for loans, they must first be administered by a third party custodian. After selecting your custodian, you simply send a transfer form to them and they’ll do all the work for you, once you’ve done that you are ready to make private mortgage loans. We would be happy to recommend a local custodian we’ve worked with in the past who can assist you with setting up your account.
INVESTMENT
TERMS & CONDITIONS
Minimum Investment: When working with private lenders, $50,000 is our minimum standard investment. When first investing with us, a lower initial investment
amount may be agreed upon to ensure you’re confident when working with our company.
Mortgage Terms: The majority of our loans are set up on an 8-12 month note; however, it depends on the size of the project. If we are doing a teardown and
rebuild, we will have to wait on the county inspectors for many approvals thus causing delays. We account for all of those details upfront and will give you estimated time frame for the return on your investment. Also, we do not pool funds your funding will be tied to one piece of property secured by a deed of trust.
Payment Schedule: Typically, we pay one large lump sum at closing on a short term note. This is much easier to manage for both of us, especially if we’re working out of a retirement account. On a longer note, we can pay monthly just like a typical mortgage.
1st or 2 nd Lien Position: The Investor, as “mortgagor,” has the right of first lien holder and Power of Sale on the property. The1st lien position is placed behind a senior mortgage. You are probably used to hearing the term first and second mortgage. The second mortgage is a junior lien because it’s in 2 nd position. The senior
lien or first mortgage must be paid prior to the 2nd lien.
Investment Terms & Conditions
- Minimum Investment – $50,000
- Interest Rate – 10% on average
- Payment Schedule – paid monthly on the 1st of the month
- Mortgage Terms – 12 months (projects usually completed in 3 to 6 months)
- Return of Principal & Interest – paid back at closing
- 1st or 2nd Lien position
- Option to renew
- All documents recorded