Learn How To Earn 8% On Your Money With None Of The Volatility Of The Stock Market And Backed By Florida Real Estate
Dear Stress Free Property Management client,
I receive requests each month from clients interested in purchasing rental properties. They request my help in pointing out any good deals I come across. These investors are seeking a decent return on their investment because the stock market is currently at an astronomically high level. The challenge is that the real estate market is not a Buyer's market, and good deals are rare and extremely difficult to discover. It takes countless hours sifting through hundreds of properties that are listed for sale to find one good deal, possibly.
The few good deals we do find, we buy for ourselves. When the market enters a recession, we will help interested clients acquire additional rental properties. However, we do offer a second alternative to our existing property management clients only.
Most of the properties we acquire are with cash, which is part of the reason we are getting a good deal. The challenge is, from time to time, we run short of cash since all of our money is invested. What we do is offer up one of our good deals as collateral, a 1st position mortgage, and borrow the money at 8% interest to accredited investors who are our existing clients. The loan typically lasts for 1 or 2 years, and we refinance the private lender out when we put a community bank loan on it. This process is known as “bridge financing.”
You see, community banks typically require you to own the property for a year or more before they will offer a loan. So we go to a private lender, with a property that we’ve recently acquired and fixed up. Often, the property is rented and producing income. We then borrow money from a private lender at 8% and give them a 1st-position mortgage on the property.
Now you might be thinking, “How do I know the property is worth what I’m lending? And that is a good question.
We send you pictures of the property, the lease, the assessed value, and the actual value. You are welcome to drive by and look at the property. You have to approve the property before making the loan. If you don’t like the property, there are no hard feelings. The goal is to make you feel comfortable and safe; otherwise, we don’t want to borrow the money.
Keep in mind, this is a good deal, so there is substantial equity above what we are borrowing from you. Plus, Chris and I are personally guaranteeing the loans. Each of us has very high credit scores, which is critically important to running our businesses. We have 20 years of experience in this market with these assets and significant personal net worth.
You are protected by the equity in the property and our personal guarantees. We’ve borrowed and repaid over $15.4 million from private lenders over the last ten years.
Our goal in uncovering good deals is to look for a property that needs repairs, has code issues, federal tax liens, or other title flaws. We prefer to invest our own money in these properties and renovate them, as long as we receive a good discount on the price, making it worthwhile. We are a licensed general contractor, plumber, heating and air contractor, and roofer. Additionally, we’ve run a successful construction company since 2012. We’ve been solving difficult real estate problems successfully for over 26 years.
For example, we bought a condo at 1400 Gandy Blvd Unit #802 in St Petersburg, FL, at the Windjammer Condominiums. I currently own the condo next door to this one. A Realtor had contacted me about a water leak between the two units, and while we were talking, he mentioned the owner of the condo has just inherited the property. This comment got my immediate attention because inherited properties are often a source of good deals. After all, the new owner is often reluctant to make repairs and wants cash.
This situation turned out to be a textbook example. The condo was rundown, with everything entirely outdated, and it had a mold problem. The tenant was paying significantly below market rent, $750 for a 3/2 condo that should rent for $ 1,150. We bought it for $65,000, which is 1/2 the cost of what a fixed-up, pristine unit would sell for at the time we bought it.
I purchased this condo with my own money. After the tenant left and the renovations were complete, a private lender made a loan to us. The condo rented for $ 1,150 a month, but after the pandemic, it is now renting for $ 1,650. After a year, we refinanced with a community bank and paid off the private lender.
7 Clear Benefits to You Becoming A Private Lender With Us:
1) You have your loan protected by a 1st position mortgage. This mortgage gets recorded with the clerk of court in the county where the property is located. You can see it online and know that you are protected.
2) There is additional equity above the loan amount protecting you. Since the property is worth more than you are lending, our interests are aligned, and Chris and I will move heaven and earth to protect this equity.
3) You're earning an 8% return, without any involvement. This is a healthy return without dealing with the constant volatility of the stock market.
4) The people (Chris and I) responsible for making the property perform with our own property management company, maintenance company, and construction company, so there is rarely a problem we haven’t solved dozens of times.
5) You are getting our personal guarantees, which are extremely valuable to us. In the last 26 years, we never failed to make a payment to our lenders and banks. We’ve never had one of our properties foreclosed, even during the worst parts of the Great Recession (2008-2011) and the Pandemic.
6) You are getting paid back in 12 to 24 months with the right to move the existing loan onto another property or keep your money in the bank. Therefore, you retain the flexibility to pull out your money or let it continue to earn interest.
7) There are no fees or commissions to pay to a broker. We cover all closing and administrative costs.
Oh, and we are not looking to borrow money from people we don’t know. The best scenario is a client that has been with us for a year or more. That way, you can already be confident that we are honest and conduct business with integrity. Most private lenders start on a small loan to test the waters and make sure we perform as promised.
On an interesting side note, I went to a real estate seminar fourteen years ago where the speaker was a seasoned investor of 50+ years. He said the secret to developing a list of private lenders willing to lend on your deal was always to perform and never let them see you sweat. So if the renter fails to pay one month, you don’t make that the private lender’s problem. If you have to spend $18,000 on a new roof, the private lender never hears about it. They get their checks without the drama.
If you do this and your private lenders never lose money or are pulled into your problems, they will never go away. They will typically loan you money throughout their lives. As the years went by, this is precisely what happened to us. That is why we don’t mind if a new private lender wants to test the waters with a small loan of $75,000. We know from over 15 years of borrowing money from private lenders that those who work with us once will still be working with us ten or fifteen years in the future.
In fact, we have one private lender who started with us in 2006. He was 92 years old. Once the Great Recession hit, we were virtually the only borrower who didn’t default. This gentleman loaned us money until his death, and we now borrow money from his kids, grandkids, and his friends. The key is building the relationship and doing what we promised without excuses. It sounds so basic, and I suppose it is, but we have been pleasantly surprised by the success we've had simply by following this simple rule.
If you’re interested in asking more questions and exploring private lending opportunities, you can reach me at 813-240-9195 by phone or text, or email me at
Keep in mind this has to be a good fit for both of us. We shy away from private lenders who want constant updates and need lots of hand-holding. The private lenders that enjoy working with us scout the properties and verify all the information. They choose the property they like, cut a check to a title company, and we close. The lender gets a check every month or quarter (depending on the loan's size), and in 12 to 24 months, they hear from us about a payoff. If the lender wishes, they can roll the loan into a new property or receive the payoff.
Best regards,
David Lowrey
Stress Free Property Management
4501 E Columbus Drive
Tampa, FL 33605
813-240-9195 cell
