Working with Private Money Lenders
Who Are We?
Mogul Developers, Inc is a Fortunofessional, full service real estate solutions firm operating in , Tennessee and Southaven, Mississippi. We specializes in buyinge Builders inspired, motivated, pr distressed, outdated properties at below market value prices. We then redevelop and resell Memphisthem to retail homebuyers and landlords.
What’s our competitive advantage?
We provide a unique alternative for home sellers that bypasses real estate agents and allows us to work with them directly. We structure purchases by utilizing private money investors. This allows us to make all cash offers, close quickly and operate on the seller’s timeline. Our business model bypasses traditional lending
institutions that can sometimes take weeks to provide loan approvals. We are able to close deals in as little as 10-14 days.
What Is Private Lending?
A private money loan is a loan that is given to a real estate investor to purchase and rehab a distressed property. The investment is secured by the property purchased and in as little as 3-6 months the lender will receive their initial investment back, plus a 8% return. This is 4 or 5 times the rates you can get on bank CD’s and other traditional investment plans.
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 principle investment. There is no other investment vehicle like it.
We Protect Our Lenders
Each property we acquire is put through a rigorous evaluation process in order to assess its profitability before the property is ever purchased. “lntegrity” 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 a legal commitment from us to repay the amount of the loan with interest.
Deed of Trust/Mortgage: This document is recorded with the county clerk and recorder to publicly secure your investment in the property as collateral. If you are not repaid, you own the property.
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 Follow A Strict Due Diligence Process
We have a systematic and disciplined approach when purchasing investment properties, putting each potential investment through a strict due diligence process. This rigorous set of criteria includes, but is not limited to, the following:
- Comparable property analysis and examination by a certified, independent appraiser
- An economic study of the neighborhood, city planning and development
- Demographics of area, marketability, and growth potential
- Overall condition of the property, including heating and air, plumbing, electrical, roof and structural condition
investor information
investor information
We invest in Single Family Homes in Memphis, Tennessee and Southaven, Mississippi in areas which are stable’ showing improvements and steady growth considering these four points of concerns.
- Location: Property values in the real estate business are often based on location. A small lot near essential amenities like public transportation will likely be more valuable than a large parcel of rural land. A lot near an airport or freeway may be worth less than one in a quieter residential area. We observe the neighborhood and market trends to find areas with high growth potential when we are looking to invest in real estate.
- Short-term vs. long-term investments: Our investment offers are 12, 24, and 36-month obligations. We decide whether to embark on a short-term investment (which can become liquid in a short period of time) or a long-term investment (which can become liquid over a longer period of time). When we want to focus on short-term projects, we may become a wholesaler for fix and flip properties that we can turn and sell for a quick but small profit. Wholesaling is when the investor assesses a property’s market value and repair costs, then hires a third party to serve as the ‘flipper’ to make improvements and turn a profit. Conversely, we use residential property or commercial real estate for long-term buying and leasing, which helps the company generate cash flow and build income over time.
- Capital: Our investments are limited by the amount of money we can spend. We may be tempted to invest in a cheap vacant lot in a great location, but we will also have to consider the cost of building a structure on that land. But we consider ourselves to be wise investors and normally invest in an existing property to lower the potential financial risk.
- Time investment: We consider the amount of time and effort we can devote to the development, management, and operation of our property investment. Active properties like residential complexes can involve a great deal of time and effort in tenant management and project management. Our time to invest in these projects is limited to 36 to 60 Months.
