The process is simple. You lend funds to one of my experienced, successful and fully vetted real estate investors to fund a secured, short-term real estate flip. Once the project is complete, you get your money back plus 12% interest based on annual percentage rate (APR).
SECURED. The word “secured” means that you will receive a legally binding, notarized Mortgage Deed (“Deed”) and Promissory Note “Note” secured by a lien against the property when you transfer the funds. It also means you only send money to a licensed escrow company that distributes all funds based on the Note and Deed at closing.
RECORDED. “Recorded” means the lien is recorded at the Hawaii Office of Conveyances as a legal hold against the property. The property cannot be sold until you release the lien when your funds are returned plus 12% interest.
CLOSING. When the project is complete, the property is sold . At closing, you will authorize the release of the lien and, at the same time, you will receive your funds, plus 12% interest and reimbursement for any other costs. My Private Lenders never pay anything.
DOCUMENTS. As a Legal Administrator/Paralegal, I draft and process all the legal documents for my Private Lenders.
TIME. How long does it take? Flips are short-term and typically 4-6 months but can last up to 12 months. I built into all my contracts that my private lenders get a minimum of six months interest even if closing occurs sooner. I also but into my contracts that my Private Lenders get 18% in the unlikely event the project goes over 12 months.
EXAMPLE: If you lend $100,000 and the project takes between 4-6 months, you receive $6,000 in interest! If the project takes 9 months, you receive $9,000 in interest!
THE PROPERTY. I provide a brochure of the property from the investor, I physically inspect the property, I run the numbers and I verify government documents to ensure the property is worth more than all money invested. I even take Private Lenders to see the property if they like. Some of my private lenders are out-of-state and only see pictures of the property.
BE THE BANK! This is how the bank secures properties with mortgages. As a private lender, you are the bank! But unlike the bank, we don’t make risky loans to families who may not be able to pay their mortgage. We lend money to experienced, successful real estate investors who flip houses for a living.
WORST CASE SCENERIO. Investing in real estate is essentially one of the smartest and safest strategies to promote wealth building. In the very unlikely even that foreclosure would occur, your lien on the property would prevent the sale of the property. In that case, I could represent you in a non-judicial sale of the property to get your money. Yes, I included a non-judicial foreclosure clause in my contracts which means you would not have to file a lawsuit to sell the property. I would work directly with any other lien holders to sell the property for the amount necessary to satisfy all liens. This is why more people become millionaires from real estate than anything else.
I don’t charge my Private Lenders anything and my Private Lenders don’t pay anything to lend money through my business. So far, Aubart & Associates transferred $970,000.00 from private lenders to real estate investors for funding secured, short-term real estate flips here in Hawaii. Our private lenders received a combined $116,400.00 (12%) in passive income without lifting a finger!
I’d be truly be happy to meet you at the NEX complex to talk to more about this amazing opportunity and show you the Note and Deed documents. Personally, I kept $300,000 in the bank for two years trying to decide what to do with it, and got almost nothing, when I could have got $72,000!!! Don’t be that guy!
“Be the Bank!” Ask me how.
Kevin .T. Aubart, Administrator
Aubart & Associates, LLC
Honolulu, HI 96828